GBPJPY is showing follow-through selling after a massive sell-off on Friday. The pound sterling tumbles against the US dollar after hawkish comments from Fed Chairman Powell. The policy divergence between US Fed and BOE is putting pressure on GBPUS d at higher levels. Any breach below 1.2720 confirms further bearishness. GBPJPY hits an intraday low of 163 and is currently trading around 163.13.
USDJPY
USDJPY trades lower on declining US treasury yields. Any intraday weakness is only below 127.
Technicals:
On the lower side, immediate support is around 163, breach below will drag the pair to the next level to 161.60/160. The minor resistance to be watched is around 164, a break above that level confirms intraday bullishness, and a jump to 166/168 is possible.
It is good to sell on rallies around 163.55-60 with SL around 165 for the TP of 160.
