Ichimoku Analysis (Daily Chart)
Tenken-Sen- 145.12
Kijun-Sen- 141.88
GBPJPY is consolidating between 150.73 and 147.40 for the past two weeks. The slight weakness in the yen is supporting the pair at lower levels. The major sell-off in pound sterling despite the removal of lockdown and declining deaths due to coronavirus. The broad-based US dollar buying is dragging the GBPUSD down below 1.3850 levels. USDJPY is holding above 108 levels, a jump to 108.80 likely. The yen is inversely related to US bond yield. The short-term trend of GBPJPY is bullish as long as support 147.28 holds.
Technical:
The pair is struggling to close above 150 levels; any weekly close above 150 confirms further bullishness. A jump to 151.50/152.70 is possible. On the lower side, near-term support is around 149.45. An indicative break below will drag the pair down to 149/148/147.40. Significant trend reversal only below 144. A violation below will drag the pair to 142.80.
Indicator (Weekly chart)
CAM indicator –Neutral
Directional movement index –Neutral
It is good to buy on dips around 149.40-45 with SL around 148.80 for the TP of 150.70./151.20.
