GBPJPY declined sharply on weak Pound sterling. It hit a low of 180.71 yesterday and is currently trading at around 181.19.
GBPUSD- Trend- Bearish
The pound sterling hits a multi week low on board-based US dollar buying. US Richmond manufacturing index for Sep came at 5 vs. -7 last month. The conference board's consumer confidence declined to 103 in Sep, compared to a forecast of 105.50. Sales of new single-family houses tumbled 8.7% in August to 675K vs. 700k expected. Any close below 1.21350 confirms further weakness.
USDJPY- Bullish
The pair hits a fresh high on strong US treasury yields. The significant resistance is 150/152.
GBPJPY analysis-
The near-term resistance is around 181.50, a breach above targets 182.50/183.35/183.85/184.60/185. The immediate support is at 180.70, any violation below will drag the pair to 180/176.50.
Indicators (4-hour chart)
CCI (50)- Bearish
ADX- bearish
It is good to sell on rallies around 181.55-60 with SL around 182.30 for the TP of 176.50.
