UK Inflation Eases: GBP/JPY Eyes Key Resistance at 190

 GBP/JPY pared some of its gains after UK CPI.  It hit an intraday low of 188.59 and is currently trading around 188.86. Intraday trend is bullish as long as support 186.50 holds.

The UK March 2025 CPI registered a year-on-year rise of  2.6%, below 2.8% in February, and a rise of 0.3% month-on-month. CPIH also rose by 3.4%, below last month, and owner occupiers' housing costs by 7.2%. Recreational and cultural and motor fuel exerted downward pressures, offset by increased clothing prices. Core CPI fell marginally to 3.4%, and core CPIH fell to 4.2%. Goods inflation fell to 0.6% and services inflation slowed to 4.7%. These are a modest reversal of the inflationary pressures, but still at rates in front of the Bank of England's 2% target.

The GBP/JPY pair is trading above 34 and 55 EMA (Short-term) and below 200 EMA (long term on the 4-hour chart, confirming a mixed trend.  Immediate resistance is at 190, a breach above this level targets of 191/191.75/192.30/193. Downside support is at 188 with additional levels of 187.70/187.10/186.45.

Market Indicators

CCI (50)- Bullish

Directional movement index - Neutral

Trading Strategy: Buy on dips

 It Is good to buy on dips around 188  with SL around 186.50 for a TP of 192.