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GBPJPY trades highly volatile on Brexit uncertainty,better to go long on dips

GBPJPY had a roller coaster ride yesterday on Brexit uncertainty. GBP recovered sharply after Theresa May offered new Brexit plan on Tuesday but MPs reacted negatively to UK PM’s last effort. Today May will present her new Brexit deal which will contain a 10 point plan which is intended to make plan attractive to MP. The chance of winning withdrawal agreement vote in house of commons for UK PM is very negligible which is going to happen on Jun 3rd. GBPJPY hits high of 141.72 yesterday and started to decline sharply. It is currently trading around 139.81.

 

On the lower side, near term major support is around 139.50 and any violation below will drag the pair to next level till 139/138.60.

 

The minor resistance of the pair is at 140.60 and any break above targets 141.20/141.80 (300- H EMA).

 

RSI- 25 OVER SOLD LEVEL

 

It is good to buy on dips around 139.50 with SL around 139 for the TP of 141.50.

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