FxWirePro- GBPJPY Trade Idea

The GBP/JPY  gained sharply on the weak yen. It hit a high of 193.59 at the time of writing and is currently trading around 193.13. Intraday trend is bullish as long as support 191.80 holds.

Japan's National Core CPI of 3.0% year-over-year, above the projected 2.9%, as of March 2025. That is below last month's 3.2%, reflecting moderation in inflation pressures, but still entrenched inflation in the Japanese economy.

The Bank of England (BoE) has also chosen to hold its central rate at 4.5%, a level representing continued economic doubt, if not least due to international trade tension and home country torpor. The BoE Monetary Policy Committee voted by a majority of 8 to 1 to leave it there, with one arguing for cutting it. The BoE cautioned against expecting to see steep cuts in rates, reporting a cautious response to future monetary policy easing because inflationary pressure will ease even further

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 mixed trend. Immediate resistance is at 193.60,a breach above this level targets 194/194.90/ 196/196.80/198. Downside support is at 193 with additional levels at 192.45/191.70/191/189.80/188.75/188/187.25/186/185.

Market Indicators

CCI (50)- Bullish

Directional movement index - Neutral

 It is recommended to sell on rallies around 194-194.10 with a stop-loss at 195 for a TP of 190.80.