FxWirePro- GBPJPY Daily Outlook
GBPJPY has been consolidating in a narrow range between 157.22 and 153.79 for the past two days. The pair was one of the worst performers this month and lost more than 1300 pips on the weak Pound sterling. BOJ said it was willing to interfere in the Fx market have pushed the yen slightly higher. The US Fed Atlanta president warned that the UK chancellor's tax cut 45 bn package has increased the chance of global recession. The pound sterling showed a minor pullback from a low 1.03565 on short covering. Technically GBPJPY in the 4-hour chart holds below short-term 55-EMA, 21 EMA, and long-term 200 EMA (161.95). Any convincing break below 153.50 will take the pair to the next level 150/148. GBPJPY hits an intraday low of 153.99 and is currently trading around 154.47.
The near-term resistance is around 157.50, a breach above targets 159.20/160161.49/162.50.
Indicators (4-hour chart)
CCI (50) – Bearish
It is good to sell on rallies around 155 with SL around 156 for TP of 150.