GBPJPY recovered sharply after hitting a minor bottom of 164.86. The pound sterling surged against all majors on optimism about political development in the UK. The market mood got elevated in the UK after the election of New PM Rishi Sunak will bring stability to the UK economy. Any close above 1.13255 confirms intraday bullishness, a jump to 1.1400 is possible. Technically in the 4-hour chart, GBPJPY holds above short-term 21-EMA, 55- EMA, and long-term 200 EMA (164.14). 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 167 with SL around 166 for a TP of 172.
