GBPJPY showed a minor pullback of more than 150 pips from its Friday's low of 161.56. The pound sterling declined nearly 200 pips on Friday to a company survey report. According to the British Chambers of commerce, 54% of companies expected turnover to increase in 12 months compared to 63%. Any daily close below 1.2000 confirms a bearish continuation. Technically in the 4-hour chart, the pair is holding below 21-EMA, above 55 EMA, and long-term 200 EMA (164). Any break below 163 will drag the pair down to 161.50/160. GBPJPY hits an intraday high of 163.66 and is currently trading around 163.658.
The near-term resistance is around 164, any breach above targets 165/165.65/166.35.
Indicators (4-hour chart)
CCI (50) - Bearish
ADX- neutral
It is good to sell on rallies around 164.15-20 with SL around 165.25 for TP of 160.
