FxWirePro- GBPJPY Daily Outlook

GBPJPY gained 200 pips after hitting a low of 166.70 on the weak yen. It hits an intraday high of 168.45 and is currently trading around 168.44.

GBPUSD- Trend- Bearish

The cable pared some of its gains after hitting a fresh 6-month high at 1.2444. UK headline inflation dropped to 10.7%, below the estimate of 10.90%. Markets eye the UK Bank of England monetary policy for further direction. Any dovish rate hike by BOE will push the pound sterling lower. Any break above 1.2500 confirms further bullishness.

USDJPY- Bearish

The pair recovered after the hawkish rate hike by Fed. The policy divergence between US Fed and BOJ puts pressure on the yen. Any close below 133.50  confirms a bearish continuation.  Minor resistance is 133.50/130.

GBPJPY analysis-

The near-term support is around 167.80, a breach below targets 167/166.70/165.95. The immediate resistance is at 168.60, a jump above will take the pair to 169.30/170/172.

Indicators (4-hour chart)

CCI (50) – Bullish

ADX- Bullish

It is good to buy on dips around 167 with SL around 165.90 for a TP of 170.