GBPJPY halted its downtrend and showed a minor pullback due to pound sterling strength. It has pared most of its gains made after mixed UK retail sales. Sales fell 0.1% in June compared to a forecast of -0.2. %. Any break below 1.18800 confirms further bearishness. Technically in the 4-hour chart, the pair is holding below short-term 21-EMA, 55 EMA, and above long-term 200 EMA (164.08). Any breach below 164 will drag the pair down to take it to the next level to 163/161.80. GBPJPY hits an intraday low of 164.07 and is currently trading around 164.16.
The near-term resistance is around 165.20, any breach above targets 166/167/169.
Indicators (4-hour chart)
CCI (50) - Bullish
ADX- Bearish
It is good to sell on rallies around 165.25-30 with SL around 166.25 for TP of 163.
