GBP/JPY forms Bearish Bat Pattern, good to sell on rallies
Harmonic Pattern Formed- Bearish Bat Pattern
Potential reversal Zone (PRZ) - 152.86
GBPJPY jumping for the past two trading session. The pair dipped till 148.90 on Oct 31st 2017 and jumped till 151.93 yesterday. It is currently trading around 151.30.
The strong recovery in the Pound sterling was the main cause for jump in GBP/JPY. GBP jumped against all majors on speculation of rate hike by BOE in the monetary policy
meeting today. Markets have priced 80% for a 25bpbs rate hike. But any dovish rate hike by BOE will prevent further drastic up move.
On the downside, near term support is around 150.40 (4H Kijun-Sen) and any break below will drag the pair to next level till 149.95 (55- 4H EMA)/149.26 (233- 4H MA).
The near term resistance is around 152.86 and any break above confirms bullish continuation. Any break above will take the pair till 155.
It is good to sell on rallies around 152-152.10 with SL around 152.90 for the TP of 150.40/149.95.
Potential reversal Zone (PRZ) - 152.86
GBPJPY jumping for the past two trading session. The pair dipped till 148.90 on Oct 31st 2017 and jumped till 151.93 yesterday. It is currently trading around 151.30.
The strong recovery in the Pound sterling was the main cause for jump in GBP/JPY. GBP jumped against all majors on speculation of rate hike by BOE in the monetary policy
meeting today. Markets have priced 80% for a 25bpbs rate hike. But any dovish rate hike by BOE will prevent further drastic up move.
On the downside, near term support is around 150.40 (4H Kijun-Sen) and any break below will drag the pair to next level till 149.95 (55- 4H EMA)/149.26 (233- 4H MA).
The near term resistance is around 152.86 and any break above confirms bullish continuation. Any break above will take the pair till 155.
It is good to sell on rallies around 152-152.10 with SL around 152.90 for the TP of 150.40/149.95.