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The U.K. is printing its inflation numbers in a few hours!

If you’re like me and you’re looking to trade the pound during the event, then you’ll definitely want to check out GBP/JPY’s long-term uptrend.

But first, let’s take a look at the top headlines that dominated the news wires during the Asian session:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

  • U.K.’s CPI report at 6:00 am GMT
  • U.K.’s PPI numbers at 6:00 am GMT
  • Eurozone’s trade balance at 9:00 am GMT
  • Canada’s CPI at 12:30 pm GMT
  • U.S. retail sales at 12:30 pm GMT
  • FOMC policy updates at 6:00 pm GMT

What to Watch: GBP/JPY

GBP/JPY Daily Forex Chart
GBP/JPY Daily Forex Chart

As you can see, GBP/JPY has been consolidating in a tight range after falling sharply earlier this month.

The stalemate between bulls and bears could end today when the U.K. prints its consumer prices.

Word around the hood is that annualized AND core prices are expected to weaken for the month. Not good for an economy that’s already dealing with Brexit uncertainty and a second wave of COVID infections.

A worse-than-expected release could finally drag GBP/JPY below a channel support that has been valid since mid-March. A more positive report, on the other hand, could highlight Stochastic’s oversold signal and the 100 SMA support and extend Guppy’s long-term uptrend.

Before you place your orders, you should also remember that the big FOMC decision will be printed twelve hours after the U.K.’s CPI release. So, unless we see significant hits or misses about the report, then we’ll likely see some profit-taking before Powell and his gang take the spotlight.

GBP/JPY’s average daily range of 96 pips is marked on the chart to help you place your entry and exit targets during and after the CPI event.

Good luck and good trading!