GBPJPY lost its shine and lost more than 200 pips yesterday on a strong yen. The yen was one of the best performers against all majors on risk- aversion and board-based US dollar selling. The minor profit booking in the Pound sterling also puts pressure on the pair at higher levels. Any break above 1.2300 confirms further bullishness. Technically in the 8-hour chart, the pair is holding below short-term 21-EMA, above 55 EMA, and long-term 200 EMA (163.105). Any breach below 160 will take the pair to next level to 157/155.60. GBPJPY hits an intraday low of 160.02 and is currently trading around 160.19.
The near-term resistance is around 160.50, with violations above 161.50/162.21/163.
Indicators (4-hour chart)
CCI (50) – Bearish
ADX- Bearish
It is good to sell below 160 with SL around 161 for TP of 155.80.
