GBP/JPY faces strong resistance at 148, good to sell on rallies
GBP/JPY has shown a huge jump and hits one month high after better than expected UK inflation data. The pair jumped till 146.59 and is currently trading around 146.62.
UK CPI data Y-Y came at 2.9% compared to forecast of 2.8%. The better than expected inflation data will make the BOE to give hawkish stance.
The pair is trading well above 145 and further bullishness can be seen above 148.10 major level which has been tested three times.
On the lower side, minor weakness can be seen below 144.88 (23.6% retracement of 139.30 and 146.59) and any break below will drag the pair down till 143.65 (34- 4H EMA)/143.05 (55- 4H EMA). Major weakness can be seen only below 143 level.
Any convincing break above 148 confirms major bullishness, a jump till 150 likely.
It is good to sell on rallies around 147.50-60 with SL around 148.15 for the TP of 145.05.
UK CPI data Y-Y came at 2.9% compared to forecast of 2.8%. The better than expected inflation data will make the BOE to give hawkish stance.
The pair is trading well above 145 and further bullishness can be seen above 148.10 major level which has been tested three times.
On the lower side, minor weakness can be seen below 144.88 (23.6% retracement of 139.30 and 146.59) and any break below will drag the pair down till 143.65 (34- 4H EMA)/143.05 (55- 4H EMA). Major weakness can be seen only below 143 level.
Any convincing break above 148 confirms major bullishness, a jump till 150 likely.
It is good to sell on rallies around 147.50-60 with SL around 148.15 for the TP of 145.05.