FxWirePro- GBPJPY Daily Outlook

GBPJPY is trading weak for a third consecutive month on the strong yen. It hits a low of 156.36 and is currently trading around 156.615.

GBPUSD- Trend- Bearish

The cable pared some of its gains after hitting a minor top of 1.24465 despite the weak US dollar. The policy divergence and economic recession in the UK put pressure on the pound sterling at a higher level. The minor pullback in the US treasury also prevents the cable from further upside. Any close below 1.2000 will drag the pair further down to 1.1900. Markets eye US Final manufacturing PMI for further direction.

USDJPY- Bearish

 The pair was one of the worst performers the previous month and lost more than 800 pips on surging yen. The escalation of the number of Covid cases in China and renewed tension between Russia and Ukraine has increased demand for safe-haven assets like the yen. Minor support is  129.50/128.

GBPJPY analysis-

The near-term support is around 156, a breach below targets 155/151.80. The immediate resistance is around 157.75, a jump above will take the pair to 158.40/159.50.

Indicators (4-hour chart)

CCI (50) –Bearish

ADX- Bearish

It is good to sell on rallies around 158 with SL 159.50 for a TP of 155.