GBPJPY: Sell on rallies : FxWirePro | March 1, 2018

GBP/JPY -0.02% has been continuously weak for second consecutive day. The pair declined almost 180 pips yesterday. The pair decline was mainly due to major dip in Pound sterling -0.10% after breaking major support at 1.3800. The pair hits low of 146.46 and is currently trading around 146.75.

The GBP was declining due to strong USD after positive statement by Powell on US economy increased hopes of more than three rate hikes in this year. Another round of Fed chairman Powell talks was major event to be watched for the day. GBP/JPY’s near term resistance is around 147.75 (200- day MA) and any break above will take the pair to next level till 148.50 (support turned into resistance)/149. Any close above 150 confirms minor bullishness, a jump till 150.50/150.82.

On the lower side, near term support is around 147 and any break below will drag the pair till 146/145.

It is good to sell on rallies around 146.90-95 with SL around 147.75 for the TP of 146/145.