It’s been a nice start to the day with five take profits in a row on Nikkei, DAX, GBP/JPY and USD/JPY. Thanks to the uncertainty, the markets are on a move now. The Japanese Yen took a bearish turn after a drop in the average hourly earnings. Economists were expecting a rise of 1.4% in average hourly earnings, but the actual figure came out below expectations at 0.8%.

On the other hand, the Sterling is already gaining strength over better than expected economic events, especially the Services PMI which soared to 54 from 52.8 last month.

Technically speaking, the Guppy has violated a strong resistance level of 147.200. That’s the same level which supported the GBP/JPY on May 3 and was earlier violated on May 24. The recent bullish breakout in GBP/JPY is likely to help buys to achieve 148.150 targets today.

GBP/JPY – 4 Hour Chart

Support     Resistance

146.4    147.44

146.08    147.76

145.56    148.28

Key Trading Level:    146.92

What’s My Plan?

I’m thinking of entering a sell position below 148.150 to target quick 40 pips. Whereas on the lower side, I will be looking for a buying signal above 147.250.