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FxWirePro- GBPJPY Daily Outlook

GBPJPY trades weak for the past three days on the declining Pound Sterling. It rebounded slightly against the US dollar after BOE measures to ease market turmoil. It has announced a two-week emergency purchase program to double the size of gilts buying. Any breach above 1.1200 confirms intraday bullishness. Technically in the 4-hour chart, GBPJPY holds below short-term 21-EMA,551 EMA, and long-term 200 EMA (161.87). Any convincing break below 160.75 will take the pair to the next level 160/159/158. GBPJPY hits an intraday low of 160.72 and is currently trading around 161.05.

 

 The near-term resistance is around 161.87, a breach above targets 162.70/163.40/164.45.

 

 Indicators (4-hour chart)

 

CCI (50) – Neutral

 

ADX-  Neutral

 

It is good to sell on rallies around 161.45-50 with SL around 162.50 for a TP of 159/158.

 

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