Japanese Yen Weakens Over Mild CPI - Quick Update on GBP/JPY - Forex News by FX Leaders

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

Posted Tuesday, March 26, 2019 by
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.

Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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