Japanese Yen Weakens Over Mild CPI – Quick Update on GBP/JPY
Arslan Butt • 1 min read
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.