GBPJPY holds above 162 on the strong pound sterling. It gained sharply against the US dollar after the UK govt reversed the abolition of the 45p tax rate on incomes over £150000. Bank of England bought 1.195 billion pounds of bonds to calm down the market and support the pound at lower levels. The overall trend of GBPUSD is weak as the energy crisis deepens increasing the chances of recession. Technically in the 4-hour chart, holds above short-term 21-EMA, 21 EMA, and below long-term 200 EMA (161.99). Any convincing break above 163 will take the pair to the next level 163.45/164/165. GBPJPY hits an intraday high of 163.30 and is currently trading around 162.495.
The near-term support is around 161.50, a breach below targets 160/159/158.50.
Indicators (4-hour chart)
CCI (50) – Bullish
ADX- Bearish
It is good to buy on dips around 162 with SL around 161 for TP of 164.45.
