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FxWirePro- GBPJPY Daily Outlook

GBPJPY hit a multi-week low on weak Pound sterling. It hit a low of 176.40 yesterday and is currently trading around 178.25.

 

 GBPUSD- Trend- Bullish

 

The pound sterling lost its shine on upbeat US GDP data.  US GDP accelerated to a 2.4% annualized rate in Q2, compared to a forecast of 1.8%. European central bank hiked its rates by bpbs to 4.25% as expected. The central has kept its door open for further tightening to tackle inflation. Any break below 1.27800  confirms further bearishness.

 

USDJPY- Bullish

 

 The yen gained sharply as BOJ kept its rates unchanged and loosened yield curve control. Significant resistance is 140/141.

 

 GBPJPY analysis-

 The near-term support is around 178, a breach below the target of 176/175. The immediate resistance is at 180, any violation above will take the pair to 181/182.50.

 

  Indicators (4-hour chart)

 

  CCI (50)- Bearish

 

  ADX- Bearish

 

  It is good to sell on rallies around 180 with SL around 181 for a TP of 176.

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