GBPJPY traded lower for the second consecutive month and lost more than 1100 pips from a minor top of 172.12 on the strong yen. It hits a low of 158.57 and is currently trading around 159.92.
GBPUSD- Trend- Bearish
The cable was one of the worst performers this year and hits a 37-year low at 1.0339. The policy divergence between Fed and BOE and weak UK economic data dragged the Pound sterling lower. Any close below 1.2000 confirms further bearishness.
USDJPY- Bearish
The pair lost most of its gains made this year in the last two months. The yen gained sharply after BOJ surprised markets by revising the yield curve. Any close below 130 confirms a bearish continuation.
GBPJPY analysis-
The near-term support is around 158.50, a breach below targets 156/155. The immediate resistance is at 160.25, a jump above will take the pair to 161.10/161.85/163.
Indicators (4-hour chart)
CCI (50) – Bearish
ADX- Bearish
It is good to sell on rallies around 163-63.25 with SL 165 for a TP of 155.
