The GBP/JPY lost its shine after breaking significant resistance at 196.50. It hit an intraday low of 194.83 and is currently trading around 195.17. Intraday trend is bullish as long as support 193.70 holds.
May 2025 saw a slight decrease in inflation, as per the UK Consumer Prices Index (CPI), with an annualized rate of 3.4% from 3.5% in April and 2% on sat til 5 June, while the monthly increase was 0.3% in May. In April, the core CPI, which does not include items that fluctuate, fell to 3.5% this year from 3.8%. While the transport sector was a factor in the decline, the growth in food and furniture caused some pressure on the demand for household items. These statistics, along with correction for a rise in Vehicle Excise Duty figures from April, show continued moderation of price pressures.
The GBP/JPY pair is trading below 34 and 55 and above 200 EMA (Short-term) and 365 EMA (long-term) on the 4-hour chart, confirming a mixed trend. Any violation below 194.80 indicates the intraday trend is weak. A dip to 194.30/193.70 is possible. Immediate resistance is at 195.60, a breach above this level targets of 196/196.85/198/200. Any major uptrend is possible only above 196.85.
Market Indicators (4-hour)
CCI (50)- Bearish
Directional movement index - Neutral
Trading Strategy: buy on dips
It is good to buy on dips around 194.80-85 with SL around 193.70 for a TP of 198/200.
