GBPJPY lost its shine on the weak Pound sterling. It hit a low of 182.38 at the time of writing and is currently trading around 182.665.
GBPUSD- Trend- Bearish
The pound sterling hit a multi-month low ahead of BOE monetary policy. Any hawkish 25 bpbs rate hike by the Bank of England will push the pair higher. The pair declined sharply yesterday after Fed monetary policy. US Fed kept its rate unchanged at 5.25% -5.50% as expected. In the new dot plot, 12 members voted for a 25 bpbs rate hike this year. Median GDP growth forecasts for 2023 increased to 2.1% from 1%. The hawkish surprise came in 2024. The central bank expects to cut rates twice next year from the four rate cuts predicted in June 2023.
USDJPY- Bullish
The pair showed a nice pullback on surging US treasury yield. The significant resistance is 148.50/150.
GBPJPY analysis-
The near-term resistance is around 183.35, a breach above targets 183.85/184.60/185. The immediate support is at 182.40, any violation below will drag the pair to 182/180.
Indicators (4-hour chart)
CCI (50)- Bearish
ADX- bearish
It is good to sell on rallies around 183.35-40 with SL around 184.25 for the TP of 180.
