GBPJPY has pared some of its gains on the strong yen. The Bank of Japan's intervention to support the yen also put pressure on the pair at higher levels. The pound sterling lost its shine after 300 pips jumped to 1.16454 as the election of a new PM increased political stability. Market eyes new UK fiscal plans for further direction. Any close above 1.1650 confirms further bullishness, a jump to 1.1745 is possible. Technically in the 4-hour chart, GBPJPY holds above short-term 21-EMA, 55- EMA, and long-term 200 EMA (164.45). Any convincing close above 170 will take the pair to the next level 172/175. GBPJPY hits an intraday low of 168.78 and is currently trading around 169.01.
The near-term support is around 168.75, a breach below targets 168.25/167.40.
Indicators (4-hour chart)
CCI (50) – Bullish
ADX- neutral
It is good to buy on dips around 168.75-80 with SL around 168 for a TP of 172.
