GBPJPY pared some of its gains on the weak Pound sterling. It has halted its two weeks of bullish trend against the US dollar and lost more than 150 pips. Investors started preferring safe assets like the US dollar after China reported 2 new deaths due to COVID. Any close below 1.1800 confirms further bearishness; a dip to 1.1700 is possible. Technically in the 4-hour chart, GBPJPY holds above 21-EMA, 55- EMA, and long-term 200 EMA (166.11). Any convincing close above 167.40 will take it to the next level 168.50/169/170. GBPJPY hits an intraday high of 166.94 and is currently trading around 166.806.
The minor pullback in USDJPY above 141 supports the pair at a lower level.
The near-term support is around 165, a breach below targets 164.40/163.65/163.
Indicators (4-hour chart)
CCI (50) – Bullish
ADX- Neutral
It is good to buy on dips around 166 with SL 165 for a TP of 168.
