GBP/JPY cross trades show a positive bias for the third day in a row and touch a fresh weekly high around 215.35-215.40 during Wednesday’s Asian session. Spot prices remain well off their highest level since July 2008, which they hit last week, as bulls now wait for the latest UK consumer inflation data to be released before placing bets again.
The UK’s key consumer price index (CPI) will be used to support expectations of at least one interest rate hike by the Bank of England (BoE) by the end of 2026, which should inspire British pound (GBP) bulls. On the other hand, the Japanese yen (JPY) continues to be weakened by economic concerns arising from conflicts in the Middle East and bets that the Bank of Japan (BoJ) will keep interest rates unchanged at the upcoming April meeting. Supporting factors, in turn, suggest that the path of least resistance for the GBP/JPY cross is upwards.
The recent solid rebound near the key 100-day exponential moving average (EMA) support and subsequent break of the horizontal barrier 213.10-213.15 suggest that the broader uptrend remains intact. Moreover, momentum indicators remain constructive. The relative strength index (RSI) is oscillating in the bullish area around 64, and the moving average convergence divergence (MACD) remains positive. This indicates that buying pressure is prevailing despite the recent consolidation below multi-year highs, and even if the uptrend has weakened.
The lack of nearby resistance beyond the 216.00 level means that any fresh upside break could see GBP/JPY break into uncharted territory. Moreover, momentum indicators suggest that the pullbacks are corrective rather than trend-reversing as the market remains above the 210.60 area, the 100-day EMA. A deeper pullback is expected to attract post-dip buying interest amid the prevailing uptrend.
(The technical analysis for this story was written with the lend a hand of an AI tool.)
GBP/JPY daily chart
Economic indicator
Consumer price index (y/y)
The UK Consumer Price Index (CPI) published by the UK Consumer Price Index (CPI). National Statistics on a monthly basis, it is a measure of consumer price inflation – the rate of raise or decrease in the prices of goods and services purchased by households – prepared in accordance with international standards. It is a measure of inflation used for government purposes. The y/y reading compares prices in the reference month with the previous year. Generally speaking, a high reading is seen as bullish for the pound sterling (GBP), while a low reading is seen as bearish.
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