FxWirePro- GBPJPY Daily Outlook

GBPJPY is trading weak for the third consecutive day on board-based yen strength. It hits an intraday low of 165.45 and is currently trading around 165.67.

GBPUSD- Trend- neutral

Cable consolidating in a narrow range between 1.20642 and 1.19402 for the past two days.BOE Governor Bailey testified "There has been no discussion with the government on the pace and timing of BoE asset sales."

"UK labor market has turned out to be much more constrained than we thought, different to other countries."

Analyst at JP Morgan warns the UK of further contraction in GDP by 0.6% in CY2023 due to a surge in gas prices and tighter monetary policy.

Any break below 1.1940 will drag the pair to the next level 1.1900/1.1790. Minor resistance to watch- 1.2000/1.2065.

USDJPY- Bearish

The pair has formed a double bottom near 137.50 and shown a minor pullback. The policy divergence between US Fed and BOJ supports the dollar at lower levels. Any drop below 137.50 confirms further weakness. Minor resistance is 140/141.80.

GBPJPY analysis-

The near-term support is around 165, a breach below targets 163.67/163. The immediate resistance is around 166.30, a jump above will take the pair to 167/167.50/169.10/170.

Indicators (4-hour chart)

CCI (50) – Bearish

ADX- Bearish

It is good to sell on rallies around 166.45-50 with SL 167.50 for a TP of 163.