GBPJPY pared most of its gains on the weak Pound sterling. It hits a low of 159.98 and is currently trading around 160.41.
GBPUSD- Trend- Bullish
The pound lost its shine after weak UK PMI data. Both services and Manufacturing PMI came below the 50 levels. The surge in the UK budget deficit to a record high in Dec of 27.4 billion pounds also put pressure on the pound sterling at higher levels. Any daily close below 1.2250 will take the pair to 1.2145.
USDJPY- Bearish
The pair is trading flat for the past two days. Markets eye BOJ summary for further direction. Major supports are 129/127.20/125.
GBPJPY analysis-
The near-term support is around 160, a breach below targets of 158.50/157.50/156. The immediate resistance is around 160.80, any violation above will take the pair to 161.80/163/164.
Indicators (4-hour chart)
CCI (50) –bullish
ADX- Bullish
It is good to buy on dips around 159.70-75 with SL around 159 for a TP of 163.
