GBPJPY consolidating in a narrow range between 163.56 and 160.80 for the past five days. The pound sterling declined sharply on board-based US dollar buying. The S&P Global/CIPS flash manufacturing PMI dropped to 46 in Aug compared to a forecast of 51.1. Investors expect the Bank Of England to double its interest rates by May as inflation hits 40-year high. Technically in the 4-hour chart, the pair is holding below short-term 21-EMA, 55 EMA, and below long-term 200 EMA (162.78). Any violation below 160.80 takes to the next level 160//159/158.GBPJPY hits an intraday high of 161.80 and is currently trading around 161.34.
The near-term resistance is around 162, a breach above targets 162.50/163/ 164.
Indicators (4-hour chart)
CCI (50) – Bearish
ADX- Neutral
It is good to sell on rallies around 161.75-80 with SL around 162.50 for TP of 159.
