GBPJPY recovered more than 200 pips on the strong pound sterling. It hits an intraday high of 166.10 and is currently trading around 165.93.
GBPUSD- Trend- Bullish
Cable jumped sharply after hitting a low of 1.21339 one upbeat market sentiment. The easing of Covid restrictions in China and the dovish Fed chairman speech dragged the US dollar index further down. Any weekly close above 1.2315 (55-W EMA) confirms further bullishness.
USDJPY- Bearish
The pair showed a minor pullback after hitting a low of 133.61 due to an uptick in US bond yields and easing Covid restrictions. It hits a low of 133.904 and is trading around 134.95. Any daily close above 135 confirms further bullishness. Minor support is 133.60/131.65.
GBPJPY analysis-
The near-term support is around 165, a breach below targets 164/163/160. The immediate resistance is around 166.60, 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 165.95-66 with SL 167 for a TP of 160.
