GBP/JPY flirts with trendline hurdle ahead of UK CPI release
|- GBP/JPY is attempting a break above a two-month falling trendline.
- An above-forecast UK CPI reading could put a strong bid under the British Pound.
The GBP/JPY pair has been solidly bid in the last 24 hours, but a convincing move above the falling trendline (from April 18 low and April 26 low) has remained elusive.
As of writing, the pair is trading just above the trendline hurdle of 147.65. The USD/JPY pair closed above the 200-day moving average yesterday, opening doors for further Yen weakness.
So, the stage is set for GBP/JPY to scale the falling trendline hurdle in a convincing manner.
Focus on UK CPI
The UK consumer price index (CPI), scheduled for release at 08:30 GMT, is expected to show the cost of living ticked up 2.5 perecent year-on-year in May vs 2.4 percent in April. An above-forecast reading will likely help GBP/JPY beat the trendline hurdle in a convincing manner.
On the other hand, a weaker-than-expected print risks derailing the rally in GBP/JPY.
GBP/JPY Technical Levels
Resistance: 148.11 (recent high), 148.38 (April 2 low), 148.97 (100-day moving average).
Support: 147.52 (session low), 147.05 (May 8 low), 146.82 (10-day moving average).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.