Ichimoku analysis (Hourly chart)
Tenken-Sen- 137.32
Kijun-Sen- 137.20
GBPJPY has formed a double top around 137.60 and shown a minor correction. The pound sterling has shown a massive jump against on hopes of fresh US stimulus before the election. The Bank of England member Gertjan Vlieghe said that the central bank backs negative interest rates to boost the economy. GBPUSD lost more than 70 pips from the high of 1.31767. The intraday trend of GBPJPY is slightly bullish as long as support 136.20 holds.
Technical:
In the Hourly chart, GBPJPY is facing strong support at 55-EMA. Any convincing break below 137 will drag the pair till 136.77/136.20/136. On the higher side, near term intraday resistance is around 137.60 and any indicative break above that level will take the pair till 138/139.
It is good to buy on dips around 137.20-25 with SL around 137 for the TP of 137.60/138.
