FxWirePro- GBPJPY Daily Outlook

GBPJPY pared some of its gains made on Friday on the weak pound sterling. It hits an intraday high of 167.648 and is currently trading around 167.49.

GBPUSD- Trend- Neutral

The cable facing strong resistance around 1.23105 (55-W EMA) and any weekly close confirm further bullishness. The pound sterling lost more than 100 pips from its recent high of 1.23442 on risk aversion. Markets eye BOE and Fed monetary policy for further direction.

UK economy grew by 0.50% in Oct compared to an estimate of 0.40%, rose for the first time in 4 months.

USDJPY- Bearish

The pair recovered due to a surge in US treasury yield. 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 166.50, a breach below targets 165.95/164/163. 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.