GBPJPY has formed double bottom around 163 and showed a nice pullback. The pair was the worst performer the previous week and lost 300 pips on a strong yen. The recovery in Pound sterling on board-based US dollar selling prevented the GBPJPY from further sell-off. Any break above 1.2050 confirms further bullishness. Technically in the 4-hour chart, the pair is holding below short-term 21-EMA, 55 EMA, and above long-term 200 EMA (164.05). Any breach below 164.48 will drag the pair to the next level to 163.80/163/161.80/160. GBPJPY hits an intraday high of 164.82 and is currently trading around 164.78.
The near-term resistance is around 165, any breach above targets 166.20/167.
Indicators (4-hour chart)
CCI (50) - Bearish
ADX- Neutral
It is good to buy on dips around 164.50 with SL around 163.80 for TP of 166.20.
