FxWirePro: GBP/JPY Trades in Narrow Range, Good to Sell on Rallies
- Major resistance- 140
- Major support – 135.35 (61.8% retracement of 133.33 and 139.01)
- GBP/JPY has slightly recovered after making a low of 135.70.It is currently trading around 136.43.
- Short term trend is still weak as long as resistance 140 holds.
- GBP declined against USD on Friday till 1.3245 on account of stronger than expected U.S ISM manufacturing index. U.S ISM index rose to 53.2 in Jun compared to 51.4 in May. Market awaits UK construction PMI which is to be released today for further direction.
- The bear trend from 160.11 till 133.21 will come to an end if the pair breaks and closes above 140 level.
- Any break above 140 will take the pair to immediate resistance at 142.50 (7 day EMA)/ 144.08 (High made after Brexit)/146.66 (Daily Tenkan-Sen).The minor resistance is around 139.
- On the lower side, major support is around 135.35 (61.8% retracement of 133.33 and 139.01) and any break below targets 133.33 (Jun 27th 2016 low).
It is good to sell on rallies around 137.50-138 with SL around 140 for the TP of 135/133.50