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.

Omkar Godbole FXStreet Contributor

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).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold bulls seem hesitant below $4,500 amid modest USD bounce ahead of US NFP

Gold remains on the defensive below the $4,500 mark through the Asian session, snapping a two-day winning streak amid a modest US Dollar uptick. The commodity, however, remains close to the weekly high, which it touched the previous day, as traders keenly await the release of the closely watched US monthly employment details. The popularly known US Nonfarm Payrolls (NFP) report will provide more cues about the Fed's policy path amid receding bets of a September rate hike.

Bitcoin clears $80,000 on reduced rate hike odds – Zcash, Ethena rise

Bitcoin is trading above $80,000 on Friday, sustaining the broader cryptocurrency market's risk-on sentiment. Federal Reserve (Fed) Governor Christopher Waller signaled support for a potential pause in interest rates on Thursday, lowering the odds of a September rate hike to 50%. Zcash (ZEC) and Ethena (ENA) emerge as top performers over the last 24 hours.

NFP preview: Can jobs data ease rate hike fears?

As we move to the end of the week, the focus shifts to the macro data, and to the strength of the labour market in the US. August payrolls are released on Friday at 1330 BST, and the market is expecting a reading of 58k. The unemployment rate is expected to remain steady at 4.1% and wage growth is expected to moderate slightly to 3% last month, down from 3.2%.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.