GBPJPY recovered more than 150 pips from a minor bottom of 162.73 on a weak yen. Pound sterling pared some of its losses against the US dollar on short covering. The policy divergence between the US fed and BOE puts pressure on GBP at higher levels. Technically 4-hour chart, holds below short-term 55-EMA, above 55 EMA, and long-term 200 EMA (163.53). Any decline below 163.50 will take the pair to the next level 162.70/162/160.80/159. GBPJPY hits an intraday high of 164.44 and is currently trading around 164.07.
The near-term resistance is around 164.50, a breach above targets 165/166.35/167/168/168.70.
Indicators (4-hour chart)
CCI (50) – Bearish
ADX- Neutral
It is good to sell on rallies around 163.95-164 with SL around 165 for TP of 160.60.
