FxWirePro- GBPJPY Daily Outlook

GBPJPY pared some of its gains made yesterday on the weak pound sterling. It hits an intraday low of 160.72 and is currently trading around 161.01.

GBPUSD- Trend- Neutral

The cable lost more than 100 pips as risk aversion increased due to the escalation of Russia and Ukraine tension and the increase in several Covid cases in China. Any close below 1.2000 will drag the pair further down to 1.1900. Markets eye BOE and Fed monetary policy for further direction.

USDJPY- Bearish

The pair declined after hitting a minor top around 134.50 on strong US treasury yields. The US 10-year yield jumped more than 13% in past two weeks. The policy divergence between BOJ and Fed put pressure on the yen. Any close below 130 confirms a bearish continuation, a dip to 128 is possible. Minor support is 133.50/132.

GBPJPY analysis-

The near-term support is around 158.50, a breach below targets 157/156. The immediate resistance is around 162.80, a jump above will take the pair to 163.50/165.

Indicators (4-hour chart)

CCI (50) – Neutral

ADX- Neutral

It is good to sell on rallies around 162 with SL 163.20 for a TP of 159.