UK Inflation Cools, But GBPJPY Stays Firmly Bullish Above 204

GBPJPY gained slightly after weak UK CPI data. Intraday trend is bullish as long as support 203 holds. It hit a high of 204.48 at the time of writing and is currently trading around 204.33.

UK inflation eased more than expected in October 2025, with headline CPI rising 3.6% year-over-year—its lowest since July and below forecasts—while core CPI fell to 3.4%, marking the lowest reading since December 2024. Broader inflation measures, including CPIH and both goods and services inflation, also moderated. This deceleration suggests September marked the peak of the inflation cycle, raising expectations that the Bank of England may implement further interest rate cuts later in 2025, even as inflation remains well above the 2% target for a 13th consecutive month.

Oscillators and moving averages to forecast the trend of GBPJPY

CMP- 204.33

EMA (4-hour chart)

55-EMA- 203.239

200-EMA- 202.23

365-EMA- 201.29. The pair trades above the short (55- EMA) and long-term moving average(365 EMA and 200 EMA) and 200 EMA.

Major Support- 203.60. Any breach below will drag the pair down 203/202.50/202/201.70/201.25/200.

Major resistance - 204.60.  Any break above confirms minor bullishness, a jump 205/206 is possible.

Indicator (4 hour chart)

CCI (50)-  Bullish

Average directional movement Index-  Bullish. All indicators confirm a bullish trend.

It is good to buy on dips around 203.58-60 with SL around 203 for a TP of 205.