FxWirePro- GBPJPY trade idea

The GBP/JPY  declined sharply after weak UK CPI data.  It hits an intraday  high  of 194.77  and is currently trading around 193.52. Intraday trend is bearish as long as resistance 195 holds.

The UK's February 2025 CPI, released today, indicates that the rate of inflation fell to 2.8% from 3.0% in January, while core inflation was 3.6% and the monthly CPI gain was 0.3%. This was in line with expectation and could be an influence on Bank of England's monetary policy as the reading indicates easing inflation pressures, though still above the Bank's 2.0% target. The launch corresponds to Chancellor Rachel Reeves' Spring Statement, and that could contribute to fiscal policy debate in the context of making further economic changes and cost-of-living increases.

Technical Analysis Points to Further Upside

The GBP/JPY pair is trading above 34 and 55 EMA (Short-term) and 200 EMA (long-term on the 4-hour chart, confirming a bullish trend.  Immediate resistance is at 195, a breach above this level targets 196/196.80/198. Downside support is at 193.45 with additional levels at 193.45/193//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 with a stop-loss at 195 for a TP of 190.70.