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FxWirePro: Sell GBPJPY on rallies

Ichimoku Analysis (Daily Chart)

 

Tenken-Sen- 137.78

 

Kijun-Sen- 138.64

 

GBPJPY has shown a minor recovery of nearly 100 pips from a low of 134.57. The overall trend is weak as long as resistance 136.60 holds. The broad-based buying in Yen due to increased demand for Safe-haven assets is supporting prices. USDJPY continues to trade low for 3rd consecutive days, a dip till 104.18 is possible.

 

On the daily chart, the pair is holding well below 200-EMA.  Any break below 134.50 will take it down to the next level till 133.98/131.75. It is facing strong resistance at 136.60, any violation above that level targets 137.35/138.

 

 It is good to sell on rallies around 136.35-40 with SL around 137 for the TP of 133.98.

 

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