GBPJPY was one of the worst performers yesterday and lost more than 500 pips on a strong yen. The yen regained sharply against the US dollar as BOJ was willing to intervene in the fx market. The pound sterling also lost its shine and hits the lowest level since 1985 on board-based US dollar buying. Technically daily chart holds below short-term 55-EMA, 21 EMA, and long-term 200 EMA (160.35). Any convincing break below 158 will take the pair to the next level 155.60/154. GBPJPY hits an intraday low of 158.85 and is currently trading around 158.98.
The near-term resistance is around 160, a breach above targets 161.49/162.50.
Indicators (Daily chart)
CCI (50) – Bearish
ADX- Bearish
It is good to sell on rallies around 160 with SL around 161 for TP of 157.98.
