FxWirePro: Buy GBPJPY above 137.20
Major resistance - 137.20 (previous week high)
GBPJPY has halted its 7 weeks of bearishness at 135.38 and shown a minor recovery on GBP strength. GBP was trading higher against USD on broad-based dollar selling after the dovish Fed. Cable has recovered more than 200 pips from low of 1.25060 level. The escalation of Middle East tension is supporting safe-haven assets like yen, Swiss franc. The pair hits high of 137.12 and is currently trading around 136.73.
Technically, the near term resistance is around 137.20 and any convincing break above will take the pair to next level till 138.32 (Jun 2nd week high)/138.60/139.64.
On the flip side, near term support is around 136.50 any violation below will drag the pair till 136/135.38 (Jun 18th low). Any bearish continuation only below 135.35 level.
It is good to buy above 137.20 with SL around 136.60 for the TP of 139.60.