GBPJPY lost its shine and declined more than 100 pips on the weak Pound sterling. It dropped below 1.2200 yesterday on board-based US dollar buying and economic slowdown. Any breach below 1.2160 confirms a bearish continuation. Technically in the 4-hour chart, the pair is holding above 21-EMA, above 55 EMA, and long-term 200 EMA (163.87). Any break below 165.70 will drag the pair down to 165/164.60/163. GBPJPY hits an intraday high of 166.33 and is currently trading around 166.475.
The near-term resistance is around 167, any breach above targets 167.85/168.75.
Indicators (4-hour chart)
CCI (50) - Bullish
ADX- neutral
It is good to buy on dips around 166 with SL around 165 for TP of 168.
