GBP/JPY hits 9-day low ahead of UK CPI release

GBP/JPY fell to 148.13 in Asia - the lowest level since May 14.
Eyes UK CPI release and action in the stock markets.

Omkar Godbole FXStreet Contributor

The bid tone around the anti-risk Japanese Yen, pushing the GBP/JPY to a 9-day low of 148.13 as the Asian equities turned risk-averse.

As of writing, the pair is trading at 148.30 - down 0.40 percent from the previous day's close of 148.90. The pair's decline from 150.00 (May 18 high) has left another lower high (bearish pattern) on the daily chart.

Clearly, the bears are gaining strength ahead of the UK CPI release, which is expected to show the cost of living rose 0.5 percent month-on-month in April. A below-forecast reading could reduce UK rate hike sentiment and push GBP/JPY to new multi-week lows. Meanwhile, an above-forecast print would be good news for GBP bulls.

GBP/JPY Technical Levels

The support is seen at 147.48 (May 10 low), 147.05 (May 8 low) and 146.23 (March 7 low). Meanwhile, resistance is lined up at 148.74 (10-day MA), 149.39 (200-day MA) and 150.00 (psychological hurdle).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Oversold	High
1H	Strongly Bearish	Oversold	Expanding
4H	Strongly Bearish	Oversold	Shrinking
1D	Bearish	Neutral	Low
1W	Strongly Bearish	Neutral	Shrinking
Updated May 23, 02:30 GMT

Author

Omkar Godbole

FXStreet Contributor

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

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