GBPJPY showed a minor pullback of 100 pips on the weak yen. It hits a high of 163.93 at the time of writing and is currently trading around 163.75.
GBPUSD- Trend- Bullish
The pound sterling dropped below 1.2000 on surging US bond yields. The US manufacturing PMI jumped to 47.70 last month from 47.4 in Jan, below the estimate of 48. While ISM manufacturing prices rose to 51 from a forecast of 45. GBP extends its loss after BOE said that "Some further increase in Bank Rate may turn out to be appropriate, but nothing is decided." Any close below 1.1900 will drag the pair down to 1.1800.
USDJPY- Bullish
The pair recovered sharply due to policy divergence between Fed and BOJ. Major resistance is 137.15/138.
GBPJPY analysis-
The near-term support is around 163.50, a breach below targets of 162.80/162/161. The immediate resistance is at 164.50, any violation above will take the pair to 165/166/167.01.
Indicators (4-hour chart)
CCI (50) –Bullish
ADX- Neutral
It is good to buy on dips around 163.50 with SL around 162.50 for a TP of 165/166.
