GBPJPY recovered sharply after upbeat UK CPI data. Core CPI, which excludes energy, and food rose to 7.1% YoY in May, above the estimate of 6.8%. UK CPI came at 8.7% YoY vs the forecast of 8.4%. It hits an intraday high of 181.60 and is currently trading around 181.45.
GBPUSD- Trend- Bullish
The pound sterling climbed above 1.2800 on positive UK CPI. The surge in CPI has increased the chance of a rate hike by the BOE. Any break above 1.2850 confirms further bullishness.
USDJPY- Bullish
The pair regained upside momentum in hopes of one more 25 bpbs rate hike by the Fed this year. Significant Resistance is 142.25/143.
GBPJPY analysis-
The near-term support is around 180.80, a breach below targets 180/178.80. The immediate resistance is at 182.40, any violation above will take the pair to 183/184.
Indicators (4-hour chart)
CCI (50)- Bullish
ADX- Bullish
It is good to buy on dips around 180 with SL around 179 for a TP of 185.
