GBP/JPY Stuck in a Tight Range: Eyeing UK CPI for Breakout Potential!

FxWirePro-  Buy GBPJPY above 196

GBPJPY has traded between 195.71 and 194.57 for the past two days. It hit a high of 195.24 at the time of writing and is currently trading around 195.21. 

The recent price action shows that GBP/JPY is struggling to close above 195.95, with an intraday bias remaining neutral for the day.

Markets eye UK CPI data for further movement.

UK CPI-

The UK Consumer Price Index (CPI) for September 2024 is set to be published today, October 16, 2024, at 06:00 GMT. Analysts are projecting an annual rate of 1.9%, down from 2.2% in August, which would bring the inflation rate under the Bank of England's (BoE) 2% target."

Technicals-

The pair is trading above short-term 34, above 55 EMA (194.74 and 194.28) and long-term 365 Hull MA (193.37) in the 4-hour chart.

The near-term resistance is around 196,  breach above confirms trend continuation.   A break above 195.95 would indicate a resumption of the upward movement from the low of 180.00. A jump to 197.37 (161.8% fib)/198/200 is possible. The immediate support is at 194.50, any violation below will drag the pair to 193.80/193.50/192.88/192.50.

Indicator (1-hour chart)

CCI (50)- Bullish

ADX-  Neutral  All indicators confirm the bullish trend.

It is good to buy above 196 with SL around 195 for a TP of 197.37/198..