GBPJPY pared most of its gains on the strong yen. The demand for safe-haven assets like the yen gained strength on recession fears. The Pound sterling trades weak against the US dollar despite strong UK jobs data. UK economy added 73000 jobs in July compared to the previous month and the unemployment rate came steadily at 3.8%. Any breach below 1.2000 confirms further bearishness. Technically in the daily chart, the pair is holding below short-term 21-EMA, 55 EMA, and above long-term 200 EMA (159.45). Any violation past 159.40 takes to the next level 158.65 (200-day MA). The daily close below confirms that a jump from 155.58 got completed at 168.72. A dip to 155.35/150 is possible. GBPJPY hits an intraday low of 160.08 and is currently trading around 160.905.
The near-term resistance is around 161.50, a breach below targets 162.30/162.80/164.
Indicators (4-hour chart)
CCI (50) – Bearish
ADX- Bearish
It is good to sell on rallies around 161.55-60 with SL around 162.30 for TP of 159.
