GBPJPY off the highs yesterday and lost more than 100 pips on the weak pound sterling. It showed a minor pullback against the USD on upbeat UK retail sales. It came at 0.3% MoM in Jul compared to a forecast of -0.20%. Any close below 1.18800 confirms further bearishness. Technically in the 4-hour chart, the pair is holding below short-term 21-EMA, 55 EMA, and below long-term 200 EMA (162.97). Any violation past 162.80 takes to the next level 163.60/164. Any breach above 164 confirms a minor bullish trend. A jump to 165/166.30 is possible.GBPJPY hits an intraday low of 162.808 and is currently trading around 162.645.
The near-term support is around 162, a breach below targets 161.50/160.
Indicators (1-hour chart)
CCI (50) – Bullish
ADX- Neutral
It is good to buy on dips around 162.35-40 with SL around 161.50 for TP of 164/165.
