GBP/JPY Hovering in 2008 High Zone, Price Reacts to UK CPI Data
The opening of the European session focused on the published UK inflation data and influenced the movement of the Pound currency.Reviewing the report, the UK's consumer price index (CPI) for May met forecasts to decline to 2.0% after a sharp fall the previous month to 2.3%.This is likely to put pressure on the Bank of England (BOE) to cut interest rates at the latest policy meeting on Thursday tomorrow.The Pound showed a positive initial reaction after the inflation data was published with a slight rise but limited price movement.If you look at the movement on the GBP/JPY chart, the price does not show a drastic movement by leveling below the 200.700 level.On Tuesday's trade yesterday, the price that showed a decrease was still seen to remain above the 200.00 level which became the support when making the price.Price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart signals a bullish trend, but published inflation data is seen to prevent gains.However, if the price increase happens, the high level reached last Friday around 201,600 will be a target to be challenged.That level has become the highest record price has been able to record since 2008 on the GBP/JPY chart.However, if the price plunges after this, the initial drop is seen to test the 200.00 support before a bearish signal for the price to cross the MA50 line.A lower drop is seen to around 199.00 before continuing the next drop to the focus zone in early June which is around 197.500.
The opening of the European session focused on the published UK inflation data and influenced the movement of the Pound currency.
Reviewing the report, the UK's consumer price index (CPI) for May met forecasts to decline to 2.0% after a sharp fall the previous month to 2.3%.
This is likely to put pressure on the Bank of England (BOE) to cut interest rates at the latest policy meeting on Thursday tomorrow.
The Pound showed a positive initial reaction after the inflation data was published with a slight rise but limited price movement.
If you look at the movement on the GBP/JPY chart, the price does not show a drastic movement by leveling below the 200.700 level.
On Tuesday's trade yesterday, the price that showed a decrease was still seen to remain above the 200.00 level which became the support when making the price.
Price movement above the Moving Average 50 (MA50) support line on the 1-hour time frame on the chart signals a bullish trend, but published inflation data is seen to prevent gains.
However, if the price increase happens, the high level reached last Friday around 201,600 will be a target to be challenged.
That level has become the highest record price has been able to record since 2008 on the GBP/JPY chart.
However, if the price plunges after this, the initial drop is seen to test the 200.00 support before a bearish signal for the price to cross the MA50 line.
A lower drop is seen to around 199.00 before continuing the next drop to the focus zone in early June which is around 197.500.
