The GBP/JPY pared some of its gains despite upbeat UK CPI data. It hit an intraday high of 199.74 and is currently trading around 199.32. Intraday trend is bullish as long as support 198 holds.
With the Consumer Price Index (CPI) rising to 3. 6% year-on-year—the highest since January 2024—exceeding both May's number and market predictions, UK inflation shot June 2025. Broad price increases driven by growing housing and transportation expenses helped to drive this inflation. Core measures likewise rose (core CPI at 3. 7% and core CPIH at 4. 3%), stressing sustained, broad inflation; the more thorough CPIH increased 4. 1% yearly. Headline inflation is presently much over the Bank of England's 2% objective, so this unexpected rise has drawn attention to the central bank's approaching interest rate decision.
The GBP/JPY pair is trading above 55 and 200 EMA (Short-term) and 365 EMA (long-term) on the 15-min chart, confirming a bullish trend. Any violation below 199 indicates the intraday trend is weak. A dip to 198/198/197.70/196.70/196.25/195.25/194/193.70 is possible. Immediate resistance is at 200 a breach above this level targets of 200/202/204.
Market Indicators (15 min chart)
CCI (50)- Neutral
Directional movement index - neutral
Trading Strategy: Buy
It Is good to buy on dips around 198.70-75 with SL around 198 for a TP of 202.
