GBP JPY Pierces inside Ichimoku Cloud as Yen Loses Ground

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GBP JPY Pierces inside Ichimoku Cloud as Yen Loses Ground

GBP JPY Pierces inside Ichimoku Cloud as Yen Loses Ground: The Japanese Yen lost massive ground against its counterparts on Monday.  However, the upcoming economic data from the UK makes it hard to predict the direction of GB/JPY.

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The USD/JPY saw its biggest gains in 8 months on the Japanese Yen selloff. However, the pair opened Tuesday’s Asian session on a bearish momentum.

Technical Points: GBP JPY Pierces inside Ichimoku Cloud

With the Japanese Yen weakness, the GBP/JPY pair pierced inside the daily  Ichimoku cloud on Monday. As a bullish signal, the tenkan line crossed above the Kijun line. However, the upcoming data dump from the UK this week makes it hard to predict the pair’s direction in the near future, despite the technical bullish signal.

GBP JPY Pierces inside Ichimoku Cloud

Fundamental Points: UK Economic Data Coming Up

The UK inflation data could create further volatility in GBP/JPY as the Consumer Price Index for August will be out on Tuesday at 8:30 AM GMT. The headline CPI is expected to accelerate from 2.6% to 2.8% and the core reading to tick higher from 2.4% to 2.5%. Producer input prices could show a 1.2% gain after previously printing a flat reading while output prices could be up 0.2%, signaling stronger price pressures to be feed into overall consumer inflation down the line. 

We then have the UK jobs data on Wednesday and BOE decision and MPC Minutes on Thursday. most MPC members are still expected to sit on their hands once more and probably express some caution about weak wages and consumer spending.

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