GBPJPY made a fresh seven-year high on a weak yen. It hit a high of 173.96 yesterday and is currently trading around 173.36.
GBPUSD- Trend- Bearish
The pound sterling recovered slightly after hitting six weeks low on improved market sentiment. The Republic and Democratic leaders have reached a tentative deal to prevent US default. On Friday GBP showed a minor pullback after positive UK retail sales. Any break above 1.2400 confirms further bullishness.
USDJPY- Bullish
The pair retreats from six month high of 140.89 due to profit booking. Significant resistance is 141/142.
GBPJPY analysis-
The near-term support is around 173.30, a breach below targets 172.50/171.60/170/169.30. The immediate resistance is at 174, any violation above will take the pair to 175/176.
Indicators (4-hour chart)
CCI (50)- Bullish
ADX- Bullish
It is good to buy on dips around 172.50 with SL around 171.60 for a TP of 175.
