GBPJPY surged sharply on the weak yen. It has pared some of its gains made yesterday on the declining pound sterling. GBPUSD dropped below 1.2500 despite UK PM winning a no-confidence vote. The renewed US dollar strength and policy divergence between Fed and BOE also put pressure on the Pound sterling. Any close below 1.2450 confirms further bearishness. GBPJPY hits an intraday high of 165.29 and is currently trading around 165.47.
USDJPY
USDJPY hits fresh 20-year high surging US treasury yield. A jump to 134.59 is possible.
Technicals:
On the lower side, immediate support is around 164.20, below will drag the pair to the next level to 162.90/161.75/161/160/159. The minor resistance to be watched is at 166.25, a break above that level confirms intraday bullishness, and a jump to 167.10/168 is possible.
It is a good buy on dips around 165 with SL around 164 for TP of 168.
