GBPJPY is trading flat ahead of Bank of England monetary policy. Markets expect BOE to hike rates by 50 bpbs highest levels since 1995 as UK CPI hits a 40-year high. The minor weakness in the yen also supports the pair at lower levels. Technically in the hourly chart, the pair is holding above short-term 21-EMA, above 55 EMA, and long-term 200 EMA (162.87). Any violation above 163..67 will take to the next level to 164.30/165. GBPJPY hits an intraday high of 163.05 and is currently trading around 162.18.
The near-term support is around 161.20, a breach below targets 160/159.
Indicators (1-hour chart)
CCI (50) – Bullish
ADX- Bullish
It is good to buy on dips around 163.05 with SL around 162.40 for TP of 165.
