FxWirePro- GBPJPY Daily Outlook

GBPJPY jumped more than 300 pips yesterday on the weak Yen. It hits a high of 160.16 and is currently trading around 159.52.

GBPUSD- Trend- Bearish

The cable holds above despite hawkish FOMC minutes. Fed members agreed inflation was "unacceptably high" and no participant agreed to lower rates in 2023. The British public's inflation expectations declined to 5.7% in Dec, according to Citi/YouGov. The minor sell-off in the US treasury supports cable at lower levels. Any daily close above 1.2110 will take the pair to 1.2200.

USDJPY- Bearish

 The pair recovered sharply after hitting a multi-month low as the Bank of Japan prefers easing monetary policy. Major resistance is 133/134.50.

GBPJPY analysis-

The near-term support is around 158.80, a breach below targets of 158.30/157.75. The immediate resistance is around 160.20, a jump above will take the pair to 160.70/161.50/163.

Indicators (4-hour chart)

CCI (50) –Neutral

ADX- Neutral

It is good to buy above 160.20 with SL around 159.50 for a TP of 163.