GBP/JPY struggled for a second straight session on Wednesday, trading around 199.90 in Asian hours as the Pound Sterling (GBP) lost ground against major peers ahead of key UK inflation data. Markets are awaiting the release of the Consumer Price Index (CPI) and Retail Price Index, while the US Federal Reserve’s policy decision later in the day is also in focus.
Technical outlook: bullish channel intact despite pullback
Despite near-term weakness, the cross remains within an ascending channel on the daily chart, maintaining a constructive bias. The 14-day Relative Strength Index (RSI) hovers slightly above 50, signaling a mild bullish tilt. GBP/JPY is also holding above its nine-day Exponential Moving Average (EMA), reinforcing positive sentiment.
Upside barriers are clustered around the 200.00 psychological level, followed by 200.75 — the highest since July 2024, reached on September 15. A decisive break above these levels could open the way toward the channel’s upper boundary at 203.10.
On the downside, initial support is seen at the nine-day EMA near 199.79, with the lower boundary of the ascending channel providing a buffer around 199.50. A break below this zone would weaken the bullish bias and expose the 50-day EMA at 198.61.
