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

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

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

• Last updated: Wednesday, June 19, 2019

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!

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

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.