GBP/JPY dips to lows near 129.50, UK CPI eyed

After climbing to fresh highs in the mid-130.00s, GBP/JPY met increasing selling pressure and is now coming down to test the lower end of the range near 129.50.

GBP/JPY lower ahead of UK releases

The cross met extra downside pressure following increasing demand for the Japanese safe haven via a significant drop in USD/JPY.

Bids for JPY have prompted the cross to extend its drop to 6-week lows and to trade at shouting distance from YTD troughs around 128.80 (July 4).

Next on tap in the data space, UK’s inflation figures tracked by the CPI are due later, with prior surveys seeing consumer prices contracting 0.1% in July and advancing 1.5% on an annualized basis.

GBP/JPY key levels

As the moment the cross is retreating 0.67% at 129.55 and a break below 128.77 (2016 low Jul.6) would expose 118.70 (low Jun.1 2012) and finally 117.30 (low Jan.13 2012). On the other hand, the next up barrier aligns at 134.52 (20-day sma) followed by 143.25 (high Jul.15) and finally 144.50 (50% Fibo of post-Brexit down move).