Chart pattern- Bearish divergence
GBPJPY has broken the 2022 high of 172.12 and jumped to 172.31 on a weak yen. It hits a high of 172.313 and is currently trading around 172.04.
GBPUSD- Trend- Bullish
The pound sterling pared some of its gains made the previous week after the inflation report. According to British Retail Consortium (BRC), food prices rose to 15.7% YoY in Apr, the biggest annual increase since 2005. Market eyes US fed monetary policy this week for further direction. Any close above 1.2580 will take the pair to 1.2650/1.2700.
USDJPY- Bullish
The pair consolidated in a narrow range after a massive buying. Significant resistance is 138/140.
GBPJPY analysis-
The near-term support is around 171.80, a breach below the targets of 170/168.85/168. The immediate resistance is at 172.50, any violation above will take the pair to 174/175.
Indicators (Monthly chart)
CCI (50)- Bullish
ADX- Bullish
It is good to sell on rallies around 172.15-20 with SL around 173 for a TP of 168.85.
