GBP/JPY steadies above 166.50 as UK Inflation meets estimates
FXStreet · 22 Jun 2022 112 Views
  • GBP/JPY is holding itself above 166.50 as the UK Inflation has landed in line with the estimates.
  • The UK Inflation has landed at 9.1% while the core CPI is been recorded at 5.9%.
  • Prudent commentary in the BOJ minutes has supported the yen bulls.

The GBP/JPY pair has not displayed any wild move as the UK Inflation has landed in line with the forecasts at 9.1%. The core Consumer Price Index (CPI) has been recorded at 5.9%, lower than the estimates of 6% and the prior print of 6.2%.

Even a stable inflation print demands a 50 basis point (bps) rate hike by the Bank of England (BOE) in its July monetary policy. It is worth noting that the BOE elevated its interest rates by 25 bps in June. Lower growth prospects tied the hands of the BOE policymakers to see beyond the nominal rate hike figure.

The labor market is extremely tight in the UK economy as the administration has managed to generate sufficient employment opportunities in the first quarter. Also, the Claimant Count Change data tumbled significantly in May. The UK economy recorded only 19.7K jobless claims vs. -65.5k recorded earlier.

On the Tokyo front, June’s monetary policy minutes from the Bank of Japan (BOJ) have supported the yen bulls broadly.  As per the BOJ minutes, the central bank will stick to its ultra-loose monetary policy. The overall demand in the Japanese economy is not so strong and a higher inflation rate seldom banks upon costly fossil fuels and food prices.

GBP/JPY

Overview
Today last price 166.69
Today Daily Change -0.93
Today Daily Change % -0.55
Today daily open 167.62
Trends
Daily SMA20 163.89
Daily SMA50 162.77
Daily SMA100 159.92
Daily SMA200 156.72
Levels
Previous Daily High 167.83
Previous Daily Low 165.35
Previous Weekly High 166.22
Previous Weekly Low 160
Previous Monthly High 163.91
Previous Monthly Low 155.6
Daily Fibonacci 38.2% 166.88
Daily Fibonacci 61.8% 166.3
Daily Pivot Point S1 166.03
Daily Pivot Point S2 164.45
Daily Pivot Point S3 163.55
Daily Pivot Point R1 168.52
Daily Pivot Point R2 169.42
Daily Pivot Point R3 171

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