Long GBP/JPY: Buy on dips:FxWirePro | March 2, 2018

GBP/JPY -0.45% has been continuously weak for third consecutive day. The pair declined almost 540 pips from the temporary top of 150.93. The pair decline was mainly due to strength in Japanese yen 0.70% . The pair hits low of 145.46 and is currently trading around 145.59.

The yen was trading strong on account increasing demand for safe haven. GBP/JPY’s near term resistance is around 147.04 (233- day MA) and any break above will take the pair to next level till 147.75 (support turned into resistance)/148.50. Any close above 150 confirms minor bullishness, a jump till 150.50/150.82.

On the lower side, near term support is around 145.50 and any break below will drag the pair till 144.80 ( trend line joining 135.59 and 139.30). Any break below 144.80 targets 143.77.

Momentum indicators RSI is at 23 indicate over sold and a slight jump till 147.05/147.75.

It is good to buy on dips around 145.15-20 with SL around 144.70 for the TP of 146.60/147.05.