FxWirePro- GBPJPY Daily outlook

Ichimoku Analysis (Hourly Chart)

Tenken-Sen- 151.94

Kijun-Sen- 151.64       

GBPJPY continues to trade higher for fifth consecutive days on weak yen. The yen is one of the worst performers against the USD in the past four weeks on surging US bond yield. USDJPY is facing strong resistance at 109.01 (200-W MA), any close above confirms a bullish continuation. GBPUSD is struggling to regain above 1.4000 on mixed UK data. The GDP came at -2.9% in Jan compared to-4.9%. The UK manufacturing production for Jan drops to 2.3% vs estimate -1.0%. The short-term trend of GBPJPY is bullish as long as support 151 holds.

Technical:

 The pair has closed well above 151 levels for the second consecutive days. But in the weekly chart, RSI is over-bought, a minor decline is possible. On the lower side, near-term support is around 151. An indicative break below will drag the pair down to 150.30/150. Significant trend reversal only below 149.35. The near–term resistance is around 152.50, any jump above targets 154/155.

Indicator (Daily chart)

CAM indicator –Neutral

Directional movement index –Bullish

It is good to buy on dips around 151 with SL around 150 for the TP of 153.