GBPJPY pared most of its gains on the strong yen. It hits a low of 158.90 and is currently trading around 159.19.
GBPUSD- Trend- Bullish
The pound sterling recovered above 1.2350 ahead of BOE monetary policy. The central bank to hike rates by 50 bpbs, 10th consecutive month. Any hawkish comments by BOE will push GBP higher to 1.2500. Any daily close above 1.2500 will take the pair to 1.2600.
USDJPY- Bearish
The pair declined sharply after a less hawkish rate hike by Fed. Major supports are 127.20/125.
GBPJPY analysis-
The near-term support is around 158.90, a breach below targets of 158.50/157.50/156. The immediate resistance is around 160, any violation above will take the pair to 161.80/163/164.
Indicators (4-hour chart)
CCI (50) –bearish
ADX- Bearish
It is good to sell on rallies around 159.55-60 with SL around 160.30 for a TP of 157.60.
