GBPJPY was one of the best performers in the past 10 days on the strong Pound sterling. GBP gained against all majors after UK chancellor Hunt scarped all tax cuts introduced by the new government. Bank of England also expected to delay quantitative tightening. Any breach below 1.1300 will drag GBPUSD to 1.1190. Technically in the 4-hour chart, GBPJPY holds above short-term 21-EMA, 55- EMA, and long-term 200 EMA (162.36). Any convincing break above 170 will take the pair to the next level 172/175. GBPJPY hits an intraday low of 168.44 and is currently trading around 167.709.
The near-term support is around 167.85, a breach below targets 166/165.
Indicators (4-hour chart)
CCI (50) – Bullish
ADX- bullish
It is good to buy on dips around 168 with SL around 166.80 for a TP of 172.
