The GBP/JPY pair reacted very swiftly to the announcement that President Trump had tested positive to the coronavirus. GBP/JPY quickly reached the first target at 135.16 (the low came in at 135.03). It may develop a rally to the former high at 137.02 and to 138.34.
We cannot exclude a second dip from the near peak at 137.02 to at least 135.03 and maybe even closer to solid support near 134.59 before going up again.
R3: 137.45
R2: 137.02
R1: 136.65
Pivot: 136.35
S1: 135.92
S2: 135.60
S3: 135.18
Trading recommendation:
We are long GBP from 133.51 and we took 50% frofit at 135.50 for a sweet profit. We will rebuy GBP at 135.15 or upon a break back above 137.02 and we will move our stop higher to 135.00.
