GBP/JPY jumps dramatically as UK’s inflation surprises!
Arslan Butt • 1 min read
Today, one of the most awaited figures was the CPI data of the United Kingdom. The CPI was 2.4% in August 2018, up from 2.3% in July 2018.
As per the inflation report, the rising prices for a range of recreational and cultural goods and services, transport services and clothing produced the largest upward contributions to the change in the rate between July and August 2018. But the recent data surpassed all as the UK inflation soared to 2.7%, beating the 2.4% forecast.
The Sterling is getting stronger in response and the GBP/JPY has already violated the ascending triangle pattern which was providing resistance near 147.900. The GBP/JPY can take the next stop at 148.950 while 147.900 will be there to support the pair. If you are looking to take an entry, better wait for the retracement and buy it above 148 with a stop below 147.800. Good luck!