FxWirePro: GBPJPY downside capped by 200-day MA, good to buy on dips
Ichimoku Analysis (Daily chart)
GBPJPY showed a minor recovery of more than 100 pips after hitting a low of 137.75. The pair is holding above 200-day MA for second consecutive days, this confirms minor bullishness. The upside in GBPJPY is capped due to weak Pound sterling. The rise in new cases by 938, the highest level in June, the US-UK trade issue is putting pressure on the Pound sterling. Markets await BOE monetary policy meeting on Thursday for further direction.
The daily chart shows that the pair is consolidating in a narrow range. The near term resistance is around 139.20, any break above will take the pair to 139.75/141.80.
On the lower side, near-term support is around 137.50, and any violation below targets 136.60/135.80/135.
It is good to buy on dips around 138 with SL around 137 for the TP of 140.