Key Points
- The British Pound is currently trading above the 140.00 handle against the Japanese yen.
- There is a clear bearish trend line resistance formed near 140.50 on the hourly chart of GBPJPY.
- Today in the UK, the Consumer Price Index for Feb 2017 was released by the National Statistics.
- The result was above the forecast, as there was a rise of 2.3% in Feb 2017 (YoY), more than the +2.1% forecast.
GBPJPY Technical Analysis
The British Pound gained bids around the 138.90 support area against the Japanese yen, and now placed well above the 140.00 handle. At the moment, the GBPJPY pair is facing a clear bearish trend line resistance near 140.50 on the hourly chart.
The pair failed on 3 occasions near 140.50. So, it is not easy for buyers to break and take the pair towards 141.00.
However, the current momentum favors a break, which may take the pair towards the 1.236 extension of the last decline from the 140.47 high to 138.90 low at 140.84.
UK Consumer Price Index
Today in the UK, the Consumer Price Index for Feb 2017 was released by the National Statistics. The market was expecting the retail prices of a representative shopping basket of goods and services to increase by 2.1% in Feb 2017, compared with the same month a year ago.
The outcome was above the forecast, as there was a rise of 2.3% in Feb 2017 (YoY). In terms of the monthly change, there was a rise of 0.7% in Feb 2017, compared with the +0.5% forecast. The UK Core Consumer Price Index was also above the forecast, as there was a rise of 2.0% in Feb 2017 (YoY). The market was aligned for an increase of 1.8%.
Overall, the British Pound might gain bids due to the positive UK CPI release, and GBPJPY could trade above 140.50.
