GBPJPY declined slightly on the weak Pound sterling. It hit a high of 174.68 yesterday and is currently trading around 174.03.
GBPUSD- Trend- Bearish
The pound sterling lost more than 100 pips on board-based US dollar buying. The non-farm payroll rose to 339000 in May, above the forecast of 190000. The unemployment rate rose to 3.7% vs an estimate of 3.5%. Markets are pricing in another 25 bpbs rate hike in June Any break below 1.2380 confirms further bearishness.
Market eyes US ISM services PMI and factory orders for further direction.
USDJPY- Bullish
The pair holds above 140 as upbeat NFP data increases the chance of further rate hikes by Fed. Significant resistance is 141/142.
GBPJPY analysis-
The near-term support is around 173.80, a breach below targets 173.20/172.50. The immediate resistance is at 175, any violation above will take the pair to 176/177.
Indicators (4-hour chart)
CCI (50)- Bullish
ADX- Neutral
It is good to buy on dips around 173.70 with SL around 173 for a TP of 176.
