GBPJPY is trading higher for the fifth consecutive day and surged more than 1000 pips on the strong Pound sterling. It gained sharply against the US dollar on board-based US dollar selling. The reversal of the tax rate cut plan of 45% applied to earnings above £150000 supporting the pair's lower levels. Technically in the 4-hour chart, holds above short-term 21-EMA, 21 EMA, and long-term 200 EMA (161.55). Any convincing break above 165.25 will take the pair to the next level 166.35/167. GBPJPY hits an intraday high of 165.20 and is currently trading around 164.90.
The near-term support is around 164.50, a breach below targets 163.50/162.70/162.
Indicators (4-hour chart)
CCI (50) – Bullish
ADX- Bearish
It is good to buy on dips around 164.50 with SL around 163.75 for TP of 166.35.
