GBPJPY struggled to break above trend line resistance 167.50 and lost more than 150 pips on the weak pound sterling. It hits an intraday high of 166.97 and is currently trading around 166.75.
GBPUSD- Trend- Bullish
The cable declined more than 200 pips after hitting a 5-month high of 1.2345 on board-based US dollar buying. Any close below 1.2100 confirms further bearishness.
USDJPY- Bearish
The pair rallied 100 pips in the Asian session on dovish comments from policy maker Toyoaki Nakamura. The policy divergence between BOJ and Fed put pressure on the yen. It hits a high of 137.85 at the time of writing and is trading around 137047. Any close above 137.40 in the 4-hour chart confirms further bullishness. Minor support is 133.60/131.65.
GBPJPY analysis-
The near-term support is around 166, a breach below targets 165/164/163. The immediate resistance is around 167.50, a jump above will take the pair to 169.10/170.
Indicators (4-hour chart)
CCI (50) – Bearish
ADX- Bearish
It is good to buy on dips around 166.30-35 with SL 165 for a TP of 169
