The GBPJPY at a rate of 181.440 experienced a halt to its four-day streak of success and experienced a decline to the level of 181.40.

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• GBP/JPY cut a four-day winning streak and fell to the 181.40 area.

The pair currently trades last at 181.440.

The previous day high was 182.04 while the previous day low was 178.83. The daily 38.2% Fib levels comes at 180.82, expected to provide support. Similarly, the daily 61.8% fib level is at 180.06, expected to provide support.

The GBP/JPY pair seems to be correcting overbought conditions on Monday ahead of a crucial week for the British economy. In that sense, the Consumer Price Index (CPI) from the UK in May may have an impact on Bank of England’s (BoE) Thursday decision, where a 25 basis point hike is already priced in. On the other hand, investors await Bank of Japan (BoJ) minutes on Tuesday.

On Wednesday, the UK National Statistics Office will release the CPI figures for May, which are expected to have slightly decelerated. The headline figure is expected to come in at 8.5% vs the previous 8.7% and show a 0.4% monthly increase in the month of May. The Core figure is expected to remain unchanged at 6.8% YoY.

Meanwhile, markets already priced in a 25 bps hike on Thursday with small odds of a higher increase of 50 bps. Regarding the next meetings, the updated macro-forecasts will play a big role in their expectations, but as for now, market participants foresee 25 bps hikes priced in for August, September, November, and December that would see the policy rate peak near 5.75%.

On the Japanese side, investors will look for clues on the stance of the BoJ with the minutes of the latest June meeting, where it was decided to maintain its ultra-loose monetary policy.

The technical outlook, according to the daily chart, is clearly bullish for the cross. The pair remains above its main Simple Moving Averages of 20,100 and 200 days, while indicators – despite seeing some correction – still stand in overbought conditions. That being said, more corrections may be in the horizon, but the outlook suggests a more favourable outlook for the GBP.

On the downside, support levels line up in the closest round levels of 179.00,178.50 and 178.00. On the upside, the 182.12 cycle high struck on Friday stands as immediate resistance before uncharted territory.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 181.41 at the time of writing. Pair opened at 181.87 and is trading with a change of -0.25 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 174.64, 50 SMA 171.02, 100 SMA @ 166.41 and 200 SMA @ 165.13.

The previous day high was 182.04 while the previous day low was 178.83. The daily 38.2% Fib levels comes at 180.82, expected to provide support. Similarly, the daily 61.8% fib level is at 180.06, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 179.78, 177.7, 176.57
• Pivot resistance is noted at 183.0, 184.13, 186.21

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