FxWirePro- GBPJPY Trade Idea

The GBP/JPY showed a minor pullback as the yen showed a minor sell-off. It hit an intraday low of 187.68 and is currently trading around 189.36. Intraday trend is bearish as long as resistance support 190 holds.

Tokyo Core Consumer Price Index (CPI) in February 2025 rose by 2.2% year-on-year, down from January's 2.5%. The slowdown was not anticipated as it was predicted to be 2.3%. Although slowing, the inflation rate is still above the Bank of Japan's 2% target, which may indicate ongoing inflation pressure and eventual monetary policy tightening.

Technical Analysis Points to Further Downside 

The GBP/JPY pair is trading below  34 and 55 EMA (Short-term) and 200 EMA (long-term on the 4-hour chart, confirming a bearish trend. Immediate resistance is at 189, a breach above this level targets 189.65/190/190.64/191/192. Any close above 192 in the 4-hour chart confirms further bullishness. Downside support is at 188 with additional levels at 187.65/187.25/186/185.

Market Indicators

CCI (50)- Bearish

Directional movement index - Neutral.

 It is recommended to sell on rallies around 190 with a stop-loss at 191 for a TP of 187/185.