GBP/JPY Price Analysis: Bears attack 21-DMA with eyes on UK inflation data
- GBP/JPY extends the previous day’s pullback from 10-DMA, stays pressured at weekly low.
- RSI retreat, U-turn from short-term moving averages favor further sellers.
- 153.35-30 becomes the key support, bulls need validation from three-month-old horizontal area.
- When are the UK CPIs and how could they affect GBP/USD?
GBP/JPY stays depressed near the weekly bottom, down 0.17% intraday near 155.50 as traders await UK Consumer Price Index (CPI) data during early Wednesday.
That said, the cross-currency pair’s failure to cross the 10-DMA level during the early Tuesday’s advances joins RSI retreats to direct traders to attack the 21-DMA.
It should, however, be noted that the quote’s daily closing below the 21-DMA level of 155.65 will direct the GBP/JPY bears towards the mid-November highs near 154.75.
Following that, a convergence of the 100-DMA, 50-DMA and 50% Fibonacci retracement level of July-October 2022 upside, near 153.35-30 will be crucial to watch.
Meanwhile, the corrective pullback will again aim to cross the 10-DMA level of 156.50 before jostling with multiple resistances around 157.30.
Even so, a horizontal area comprising multiple levels marked since late October, near 157.70-80, could challenge the GBP/JPY bulls before allowing them to test the year 2021 peak of 158.22.
GBP/JPY: Daily chart
Trend: Further weakness expected