On the technical front, the technical indicators are lining up for a bearish retracement. Watch out.

GBP/JPY is trading above 100 periods MAs suggesting a bullish momentum in the short-term.

GBP/JPY is facing strong support around 147.200 along with resistance at 149. We can also see a 100 periods moving average crossover at 146 which demonstrates a buying trend.

The leading indicators, such as the Relative Strength Index and Stochastic holding above 80. It suggests that bulls may get exhausted soon, giving power to sellers.

There’s a bearish engulfing pattern on the 4-hour chart which may drive sellers below 149.

But investors are also afraid of taking positions in the GBP/JPY ahead of British vote.

Support Resistance
146.23 149.41
144.3 150.66
141.12 153.85
Key Trading Level: 147.48

GBP/JPY – Trade Plan

The idea is to stay bearish below 149 with a stop loss below 149.250 and take profit at 148.450 and 148.

Good luck!