GBP/JPY trades below 23.6% Fibo ahead of UK data

GBP/JPY backed off from the daily high of 154.63 levels to trade below 154.22 (23.6% of 162.58-151.64) levels ahead of the UK CPI data release.

Awaits UK data

The data due today is likely to show cost of living as represented by consumer price inflation ticked higher in March. GBP rallied yesterday as UK gilt yields rose in anticipation of a rise in CPI, hence the data may have been priced-in.

Meanwhile, drop in the European equity markets is helping the Yen recover losses. The cross dipped briefly to a low of 154.07 before recovering to trade around 154.22.

GBP/JPY Technical Levels

Acceptance above 154.22 (23.6% of 162.58-151.64) could see the cross have a relook at the daily high of 154.63, above which a major hurdle is seen at 155.00. On the other hand, a break below 154.00 would open doors for a drop to 153.53 (hourly 100-MA) and 153.30 (hourly 50-MA).