GBP/JPY Halts Near 158.00 on the Back of Lower UK CPI Figure

Azeez Mustapha

Updated:

Unlock Daily Forex Signals

Select a Plan

£39

1 - month
Subscription

Select

£89

3 - month
Subscription

Select

£129

6 - month
Subscription

Select

£399

Lifetime
Subscription

Select

£50

Separate Swing Trading Group

Select

Or

Get VIP forex signals, VIP crypto signals, swing signals, and forex course free for lifetime.

Just open an account with one our affiliate broker and make a minimum deposit: 250 USD.

Email [email protected] with a screenshot of funds on account to get access!

Sponsored by

Sponsored Sponsored
Checkmark

Service for copy trading. Our Algo automatically opens and closes trades.

Checkmark

The L2T Algo provides highly profitable signals with minimal risk.

Checkmark

24/7 cryptocurrency trading. While you sleep, we trade.

Checkmark

10 minute setup with substantial advantages. The manual is provided with the purchase.

Checkmark

79% Success rate. Our outcomes will excite you.

Checkmark

Up to 70 trades per month. There are more than 5 pairs available.

Checkmark

Monthly subscriptions begin at £58.


The GBP/JPY currency pair in the prior day had rallied off the 157.00 support level produced by the 50–hour simple moving average. The British Pound gained 109 pips, or 0.70 percent, against the Japanese Yen as a result.

Earlier in the day, the European majors are broadly weaker, with Sterling reversing some gains following strong but lower-than-expected consumer inflation statistics. The dollar is also weakening, with the 10-year Treasury yield falling marginally, while the yen is attempting to recover. Overall, however, the Kiwi and AUD continue to be the strongest performers.

US futures are indicating a flat open, although buyers may re-enter the market later in the day. The stock market should continue to lead currency movements.

The GBP/JPY then surged to 0.10 percent during the New York session, trading at 157.95 at the time of writing, halting its rising trend at 158.00. Despite central banks’ efforts to normalize monetary policy circumstances, increasing energy costs, and the Federal Reserve’s bond taper announcement, market sentiment remains upbeat.

Following the announcement of the UK CPI, the British pound fell, which revealed that the Consumer Price Index climbed by 3.1 percent yearly in September, less than the 3.2 percent expected by analysts. In addition, the UK Core CPI, which excludes volatile food and energy costs, slowed to 2.9 percent on an annual basis, down from 3.1 percent in August.

Given the lower inflation data, the market continues to expect the Bank of England (BoE) to raise interest rates before the end of the year, giving the GBP/JPY a boost as the pair fell below 158.00. However, if the threat of the Bank of England raising rates remains on investors’ thoughts, the British pound could strengthen further in the coming days.

Technical Analysis of the GBP/JPY Exchange Rate

The upward trend in the GBP/JPY is overextended, as seen by the Relative Strength Index (RSI), a momentum indicator, which is currently at 78 in the overbought range, indicating that the pair may correct before resuming the current trend. The British pound, on the other hand, benefits as long as the daily moving averages (DMAs) remain substantially below the market price.

If there is a fall lower, some dip buyers could emerge around the October 18 low of 156.60, followed by the May 27 high of 156.07. If the GBP/JPY gain continues, a daily close above the psychological level of 157.00 might pave the door for a 158.00 challenge.

Furthermore, investors appear to be confident in a 2021 rate hike by the Bank of England. This was considered as another element that helped the GBP/JPY cross, albeit traders were hesitant to place further bullish bets due to overbought conditions. Nonetheless, the tendency is still in favor of bulls, which suggests that some dip-buying could emerge at lower levels.

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Share with other traders!

Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.

Leave a Reply

Your email address will not be published. Required fields are marked *