GBP/JPY Outlook: Neutral Trend Amid Dismal UK CPI; Buy on Dips Around 193.70

GBPJPY pared most of its gains after dismal UK CPI data. It hit a low of 193.70 yesterday and is currently trading around 194.31. 

The recent price action shows that GBP/JPY is struggling to close above 195.95, with an intraday bias remaining neutral for the day.

Markets eye UK retail sales data tomorrow for further movement.

Technicals-

The pair is trading above short-term 34, above 55 EMA (194.64 and 194.30), and long-term 365 Hull MA (193.79) in the 4- hour chart.

The near-term resistance is around 194.80,  breach above confirms intraday bullishness.   A jump to 195.50/196 is possible. A break above 196 would indicate a resumption of the upward movement from the low of 180.00. A jump to 197.37 (161.8% fib)/198/200 is possible. The immediate support is at 193.70, any violation below will drag the pair to 193.50/192.88/192.50.

Indicator (4-hour chart)

CCI (50)- Bearish

ADX-  Bearish. All indicators confirm a neutral trend.

It is good to buy on dips around 193.70 with SL around 192.45 for a TP of 195.95.