UK Consumer Prices Eases to 2.0% – GBP/JPY Eying 136.450 - Forex News by FX Leaders

UK Consumer Prices Eases to 2.0% – GBP/JPY Eying 136.450

Posted Wednesday, June 19, 2019 by
Arslan Butt • 1 min read

The Japanese cross GBP/JPY soared above the 135.80 low, recovering earlier losses to add +0.03% during the London session. The bullish wave came in response to the UK inflation figures.

The UK Consumer Prices Index (CPI) 12-month rate came in at 2.0% in May, when compared to 2.1% booked in April while coming in line with expectations of a 2.0% print, the UK Office for National Statistics (ONS) reported on Wednesday.

Meanwhile, the core inflation gauge (excluding volatile food and energy items) arrived at 1.7% y/y versus 1.8% booked in April while matching the consensus forecast of 1.7%.

Technically, the GBP/JPY pair is facing strong resistance at 136.450. Ít’s a double top level which supported the pair back on June 14 and is now working as a resistance. A bullish breakout of 135.500 can lead GBP/JPY towards 137.

Support Resistance
135.77 136.7
135.42 137.28
134.49 138.22
Key Trading Level: 136.35

The pair may face resistance below 50 periods EMA at 136.600. However, GBP/JPY has already violated and crossed over 20 periods EMA. Consider staying bullish above 136.500 and bearish below this level to capture 50 pips on both sides.

Good luck!

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments