GBPJPY pared some of its gains after hitting one week high on the strong yen. It gained strongly against the USD after dovish Fed minutes. The FOMC minutes indicate that a "substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate,". The minor pullback in pound sterling prevents the pair from further downside Any close above 1.2100 confirms further bullishness, and a jump to 1.2180 is possible. Technically in the 4-hour chart, GBPJPY holds above 21-EMA, 55- EMA, and long-term 200 EMA (166.40). Any convincing close above 169.10 will take it to the next level 170/172. GBPJPY hits an intraday low of 167.50 and is currently trading around 168.02
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The near-term support is around 167.50, a breach below targets 167/166.20/165.
Indicators (4-hour chart)
CCI (50) – Bullish
ADX- Neutral
It is good to buy on dips around 167 with SL 166.20 for a TP of 169.
