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.
