13 Jan 2015
GBP/JPY falls to 2-month low on weak UK CPI data
FXStreet (Mumbai) - The GBP/JPY pair extended losses to trade at a 2-month low after the data in the UK showed the cost of living slowed down in December.
The pair now trades 0.49% lower for the day at 178.79 levels. The data released in the UK showed CPI in December eased to 0.5% year-on-year, missing market expectation 0.7%, and down from the November’s 1%. The weak CPI print means the Bank of England is likely to wait longer before raising interest rates. Thus, Pound weakened, although an uptick in Core inflation to 1.3% may cap losses. Meanwhile, the Japanese Yen remains well supported on risk aversion and falling US Treasury yields.
GBP/JPY Technical Levels
The pair has an immediate support located at 178.00, under which losses could be extended to 176.82 (200-DMA) levels. Meanwhile, resistance is seen at 179 and 179.58 (5-DMA) levels.
The pair now trades 0.49% lower for the day at 178.79 levels. The data released in the UK showed CPI in December eased to 0.5% year-on-year, missing market expectation 0.7%, and down from the November’s 1%. The weak CPI print means the Bank of England is likely to wait longer before raising interest rates. Thus, Pound weakened, although an uptick in Core inflation to 1.3% may cap losses. Meanwhile, the Japanese Yen remains well supported on risk aversion and falling US Treasury yields.
GBP/JPY Technical Levels
The pair has an immediate support located at 178.00, under which losses could be extended to 176.82 (200-DMA) levels. Meanwhile, resistance is seen at 179 and 179.58 (5-DMA) levels.