FxWirePro- GBPJPY Retreats After UK CPI: Is 198.80 the Next Stop?

GBPJPY pared some of its gains after the UK CPI data. The intraday trend is neutral as long as the resistance at 200.75 holds. Currently, trading around 200.229, the pair reached an intraday high of 200.224.

With 3.8% year-over-year in August 2025, the headline CPI of the UK matched July's mark and economist forecasts, marking the second-highest rate since January 2024. With a 0.3% monthly increase according to the Office for National Statistics on September 17, is 4.0%. Driven by core CPI, which excludes volatile commodities, which dropped from 3.8% to 3.6%, broader CPIH—including housing expenses—edged from 4.2% to 4.1%. Services inflation falling from 5.0% to 4.7%. Goods inflation rose to 2.8%, and food inflation reached an 18-month peak of 5.1%; meanwhile, housing expenses slowed to 5.3% and transportation inflation fell to 2.4% because of reduced airline costs. With inflation approximately double the Bank of England's 2% goal and anticipated to peak at 4.0% this month, sustained demands from the food and services industries, Poor chances for additional interest rate reductions in 2025 run counter to gentler trends in other affluent nations.

The pair is trading below  55 and above 200 EMA  and  365 EMA (long-term) on the 1-hour chart, confirming a mixed trend.  Any violation below 199.50 indicates the intraday trend is weak. A dip to 199.20/198.75 /198/197.85/197.25/ 196.70/196.20/195 is possible.  Immediate resistance is at 200.75; a breach above this level targets 202/203.

Market Indicators ( 4-hour chart)

CCI (50)- Bearish

Directional movement index -  Neutral

Trading Strategy:  Sell

 It Is good to sell on rallies around 200.08-10  with SL around 200.75 for a TP of 198.80/197.85.