Sell GBPJPY on rallies
The GBP/JPY currency pair lost its shine in the Asian session on the strong yen. It hit a low of 193.55 at the time of writing and is currently trading around 194.02. The Potential Reversal Zone (PRZ) is set at 200.20.
In October 2024, Japan's Consumer Price Index (CPI) showed a year-on-year inflation rate of 2.3%, down from 2.5% the previous month and slightly above the expected 2.2%. This decrease continues a trend of moderating inflation, mainly due to lower energy costs. The core CPI, which ignores fresh food, also rose by 2.3%, matching expectations but down from 2.4% in September. Overall, the core inflation rate remained steady at 2.3%.
Technical Overview
The GBP/JPY is trading below both short-term and long-term moving averages, which suggests a major downtrend. The immediate resistance level is at 194.35. If the price breaks this level, it could rise toward 195/196/196.25/197. Support is at 192.80 and if that fails, the price could drop to 191.75/190.
Indicator Analysis
The CCI and ADX indicators suggest a bearish trend.
Trading Recommendation:
Consider selling on rallies around 194.15-18 with SL around 195 and aim for a target price of 190.10.
In October 2024, Japan's Consumer Price Index (CPI) showed a year-on-year inflation rate of 2.3%, down from 2.5% the previous month and slightly above the expected 2.2%. This decrease continues a trend of moderating inflation, mainly due to lower energy costs. The core CPI, which ignores fresh food, also rose by 2.3%, matching expectations but down from 2.4% in September. Overall, the core inflation rate remained steady at 2.3%.
Technical Overview
The GBP/JPY is trading below both short-term and long-term moving averages, which suggests a major downtrend. The immediate resistance level is at 194.35. If the price breaks this level, it could rise toward 195/196/196.25/197. Support is at 192.80 and if that fails, the price could drop to 191.75/190.
Indicator Analysis
The CCI and ADX indicators suggest a bearish trend.
Trading Recommendation:
Consider selling on rallies around 194.15-18 with SL around 195 and aim for a target price of 190.10.
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