The GBP/JPY pared some of its gains on the weak Pound sterling. It hit an intraday low of 198.20 and is currently trading around 198.297. The intraday trend remains bearish as long as the resistance at 200 holds.
While the BoJ's ultra-loose policy and dovish attitude were in direct contrast to the Fed's "higher-for-longer" stance, widening interest-rate differences boosted the dollar and yen-funded carry trades; delayed expectations of U. S. rate reductions strengthened the yen. New U. S. tariffs and worldwide trade tensions, Japan's fiscal and political uncertainties, and negative technical momentum all helped to weaken the yen despite its usual safe-haven appeal.
The GBP/JPY pair is trading below 55 and above 200 EMA (Short-term) and 365 EMA (long-term) on the 15-min chart, confirming a mixed trend. Any violation below 198.40 indicates the intraday trend is weak. A dip to 198/197.40/196.70/196.25/195.25 is possible. Immediate resistance is at 198.60, a breach above this level targets 198.85/199.30/200/202/204.
Market Indicators (15-min chart)
CCI (50)- Bearish
Directional movement index - Bearish
Trading Strategy: Sell
It is good to sell on rallies around 198.88-90 with SL around 200 for a TP of 196.15/194.85.
