Japanese Yen Weakens Over Mild CPI – Quick Update on GBP/JPY

The Japanese yen seems to lose attraction after the Bank of Japan reported the Core CPI y/y of 0.4% down from 0.5% previously...


The Japanese Yen seems to lose attraction after the Bank of Japan reported the Core CPI y/y at 0.4% down from 0.5% previously. It measures the change in the price of goods and services purchased by consumers, excluding food and energy. The BoJ usually pays more attention to the core inflation data.

A drop in inflation forces the Central Bank to keep the monetary policy accommodative.

GBP/JPY – Technical Outlook
GBP/JPY is trading near 145.150, maintaining a range of around 80 pips. The recent jump in GBP/JPY came in response to the dip in inflation figures.

You can see in the chart below, Guppy is trading in the ascending triangle pattern which is supporting the pair near 144.850. The immediate resistance prevails at 145.750. It’s better to wait for the pair to come out of this sideways trading range before we place any position.

Below 144.850, the immediate support will be around 144.500, and above this, we can expect a slight retracement.

GBP/JPY – Trading Plan
Traders, let’s wait for GBP/JPY to violate 145.800 before placing a buying trade. The stop should be around 145.450 with a take profit of about 147.

Good luck!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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