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FxWirePro- GBPJPY Daily Outlook

GBPJPY surged more than 400 pips on the weak yen. It hits an intraday high of 161.52 and is currently trading around 160.75.

 

 GBPUSD- Trend- Bullish

 The cable breaks significant resistance at 1.2300 after weak UK CPI. The inflation declined to 10.5% YoY in Dec, below the forecast of 10.6%. Monthly CPI came at 0.40% in line with the estimate of 0.40%. Any daily close above 1.2280 will take the pair to 1.2350/1.2440.

 

 USDJPY- Bearish

  The pair was one of the best performers yesterday after dovish BOJ.  The central bank has kept its yield curve control policy unchanged. Major resistances are 131.80/132.80.

 

 GBPJPY analysis-

 The near-term support is around 160, a breach below targets of 159.30/158.46. The immediate resistance is around 161.60, any violation above will take the pair to 162.35/163.

Indicators (4-hour chart)

 

CCI (50) –bullish

 

ADX- Bullish

 

It is good to buy on dips around 160 with SL around 158.50 for a TP of 163.

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