GBPJPY declined sharply on the weak pound sterling. Bank of England raised interest rates by 25 bpbs for the fourth consecutive time to tackle high inflation. The policy divergence between US Fed and BOE puts pressure on the GBPUSD at higher levels. Any breach below 1.2320 confirms further bearishness. GBPJPY hits a low of 160.46 and is currently trading around 161.46.
USDJPY
USDJPY regained above 130 levels on surging US bond yields. The intraday weakness is only below 128.50.
Technicals:
On the lower side, immediate support is around 160.40, breach below will drag the pair to the next level to 159/158. The minor resistance to be watched is around 162, a break above that level confirms intraday bullishness, and a jump to 162.85/164.25 is possible.
It is good to sell on rallies around 162 with SL around 163 for the TP of 159/156.
