Candlestick – long-legged Doji
GBPJPY showed a minor sell-off after hitting a six-year high. The pair has formed a minor top around 168.43 and lost more than 800 pips on the weak Pound sterling. It was one of the worst performers against the USD on aggressive rate hikes by the US Fed. The policy divergence between US Fed and BOE is putting pressure on GBPUSD. Any breach below 1.2400 confirms further bearishness. GBPJPY hits an intraday high of 163.68 and is currently trading around 163.54.
USDJPY
USDJPY pared some of its losses on BOJ's loose policy. The intraday weakness is only below 129.
Technicals:
On the lower side, immediate support is around 162, breach below will drag the pair to the next level to 159. The minor resistance to be watched is around 164.25, a break above that level confirms intraday bullishness, and a jump to 165/166/168 is possible.
It is good to sell on rallies around 164.10-20 with SL around 166 for the TP of 159/156.
