GBPJPY pared some of its gains yesterday on the weak Pound sterling. It lost its shine after Kwarteng said that the Bank of England will be to blame if UK markets slide next week. Markets eye US CPI data for further direction. The geopolitical tension between Russia and Ukraine also puts pressure on cable at higher levels. Any breach above 1.11850 confirms further bullishness. Technically in the 4-hour chart, GBPJPY holds above short-term 21-EMA, 55- EMA, and long-term 200 EMA (161.814). Any convincing break below 162.30 will take the pair to the next level 161.65/161/160. GBPJPY hits an intraday low of 162.31 and is currently trading around 162.77.
The near-term resistance is around 163.50, a breach above targets 164.45/165.
Indicators (4-hour chart)
CCI (50) – Bullish
ADX- Neutral
It is good to sell on rallies around 162.75-80 with SL around 163.50 for a TP of 159/158.
