GBPJPY recovered sharply after hitting a low of 167.42 on a strong Pound. It has shown a minor pullback above 1.1200 levels against the US dollar on improved market sentiment and the rollback of tax cuts by the Chancellor. A Delay in QT by the Bank of England also supported the Pound sterling at lower levels. Any clear breach above 1.1300 will take GBPUSD to 1.1400. Technically in the 4-hour chart, GBPJPY holds above short-term 21-EMA, 55- EMA, and long-term 200 EMA (163.15). Any convincing break above 170 will take the pair to the next level 172/175. GBPJPY hits an intraday low of 169.32 and is currently trading around 168.896.
The near-term support is around 167.40, a breach below targets 166/165.
Indicators (4-hour chart)
CCI (50) – Bullish
ADX- bullish
It is good to buy on dips around 168.50 with SL around 167.40 for a TP of 172.
