GBPJPY Technical Forecast: Pre-UK CPI Data


The GBP/JPY is lifting in early Tokyo trading, testing into 148.90 after falling from a peak of 149.68 in Monday’s action. What else is disclosed in this 20 March GBPJPY Technical Forecast?

20 March, GKFX – The Sterling took a bullish turn against the Yen on Monday and is still on the high side despite walking back some of early Monday’s gains through the London-NY overlap. The pair is currently testing back upwards ahead of the UK’s Consumer Price Index figures.

UK inflation in the pipe

The UK CPI numbers will be dropping at 09:30 GMT today, along with a pile of other indicators including the Retail Price Index, Producer Price Index, Housing Price Index, and the PPI Core Output, but all eyes will be on year-on-year CPI figures.

The Bank of England (BoE) is expected to begin lifting interest rates soon, and although analysts are expecting the headline year-on-year CPI to come in at 2.8% (prev. 3.0%), the minor contraction is expected, and the Sterling could go on a tear if the figures come out at or better than expectations.

The Yen is facing a quiet week on the macro calendar, but that’s probably for the best as Japan’s government continues to roil over the government land sale scandal that has seen the Prime Minister of Japan, Shinzo Abe and his Finance Minister, Taro Aso entrenched within their positions inside the Japanese government, with opposition party members calling for Aso’s resignation and the general public beginning to turn their backs on PM Abe.

20 March GBPJPY Technical Forecast

Monday’s bullish action has managed to lift the pair away from support at the 200-day SMA, currently sitting near 148.00 with further support from yesterday’s swing low of 148.40, while resistance rests at yesterday’s high point of 149.68 and mid-February’s swing high of 150.93.

Disclaimer

This article 20 March GBPJPY Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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