#GBPJPY @ 169.219 has climbed above 169.00 strongly ahead of UK inflation data. (Pivot Orderbook analysis)

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• GBP/JPY has climbed above 169.00 strongly ahead of UK inflation data.
• An announcement of scheduled UK bond-selling has underpinned the cable bulls.
• 55% of Tory members are ready to support Rishi Sunak for the UK PM position now.

The pair currently trades last at 169.219.

The previous day high was 170.1 while the previous day low was 166.05. The daily 38.2% Fib levels comes at 168.55, expected to provide support. Similarly, the daily 61.8% fib level is at 167.6, expected to provide support.

The GBP/JPY has soared firmly above 169.00 in early Tokyo after remaining sluggish in the New York session. The asset has gained strength amid positive market sentiment, which has improved the risk appetite of investors. On Tuesday, the cross declined to 168.00 after refreshing its six-year high above the psychological resistance of 170.00 as long liquidation kicked in.

The schedule announced for selling UK government bonds under Asset Purchase Facility (APF) has strengthened the pound bulls again. The Bank of England (BOE) has announced that it will start its delayed gilt sale operation from the first day of November. The operation was delayed by the central bank citing financial instability.

Meanwhile, UK political instability is taking more heat as Tory party members demand the removal of UK novel Prime Minister Liz Truss now. Loss of confidence in Truss’s leadership due to tedious decisions made and her inability to fetch confidence from international investors and domestic officials.

A YouGov poll of Tory members found that 55% would now vote for Rishi Sunak, who lost out to Ms. Truss if they were able to vote again, while just 25% would vote for Ms. Truss.

On Wednesday, the release of the UK inflation data will hog the limelight. As per the projections, the headline and core inflation may incline by 10 basis points each to 10% and 6.4% respectively. A return to a double-digit inflation figure could trigger more headwinds for the UK economy.

On the Tokyo front, investors are awaiting the intervention of the Bank of Japan (BOJ) in the currency market to provide support to the weakening yen. The intervention move by the BOJ will delight investors to make informed decisions. Japan officials are continuously remarking on potential intervention to support yen against speculative forex moves.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 169.32 at the time of writing. Pair opened at 169.26 and is trading with a change of 0.04 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 161.67, 50 SMA 162.47, 100 SMA @ 163.37 and 200 SMA @ 160.89.

The previous day high was 170.1 while the previous day low was 166.05. The daily 38.2% Fib levels comes at 168.55, expected to provide support. Similarly, the daily 61.8% fib level is at 167.6, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 166.84, 164.42, 162.8
• Pivot resistance is noted at 170.88, 172.51, 174.93

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