GBPJPY pared most of its gains made yesterday after the Fed monetary policy. A dovish rate hike by Fed has dragged the US dollar down against Yen. The nice pullback in pound sterling prevents the pair from further sell-off. Any break above 1.2200 confirms further bullishness. Technically in the 4-hour chart, the pair is holding below short-term 21-EMA, above 55 EMA, and long-term 200 EMA (164.17). Any breach above165.25 will take the pair to next level to 166.35/167. GBPJPY hits an intraday low of 164.52 and is currently trading around 165.10.
The near-term support is around 164.50, with violations below 164/163/161.80.
Indicators (4-hour chart)
CCI (50) – Bullish
ADX- Neutral
It is good to sell on rallies around 165.55-60 with SL around 166.35 for TP of 163.
