FxWirePro- GBPJPY Daily Outlook

GBPJPY consolidates in a narrow range between 165.95 and 167.418 for the past two trading days. It hits an intraday high of 167.17 and is currently trading around 166.86.

GBPUSD- Trend- Bullish

The cable showed a minor pullback above 1.2200 on board-based US dollar selling. Any close below 1.2100 confirms further bearishness.

House prices in the UK dropped by 2.3%, the biggest monthly fall since 2008. Economic recession fears in UK put pressure on pound at higher levels.

USDJPY- Bearish

The pair lost some of its gains after hitting a high of  137.85. BOJ governor said earlier this month that the central bank will continue its accommodative monetary policy to achieve the inflation target of 2%. The policy divergence between BOJ and Fed put pressure on the yen. Any close above 138 in the 4-hour chart confirms further bullishness.  Minor support is 136/134.

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) – Bullish

ADX- Bullish

It is good to buy on dips around 166.30-35 with SL 165 for a TP of 169.