GBP/JPY pops and drops after UK CPI data

By FXStreet FXStreet (Mumbai) – The better-than-expected UK core CPI figure pushed the GBP/JPY cross above 169 levels for a brief moment before falling back to 168.80.

Trades above 5-DMA

The pair trades above 5-DMA now; something the pair has been able to do only once in last one month. Sterling was already witnessing correction and extended the corrective rally after the data showed core CPI rose 1.4% y/y compared to the expected number of 1.2%.

It remains to be seen if the pair managed to sustain and extend gains above 5-DMA or finds fresh offers and falls back below 5-DMA.

GBP/JPY Technical Levels

As of now, the pair is trading around 168.80. The immediate support is seen at 168.58 (5-DMA), under which the pair could drop further to 167.39 (hourly 50-MA). On the higher side, 169.86 (hourly 200-MA) could act as a strong resistance, which if taken out shall open door for a rally to 171.00 levels.
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Source:: FX Street