GBP/JPY reverts to multi-year lows on UK CPI, 149 eyed

A renewed bout of buying interest seen behind the GBP/JPY cross lost steam just shy of 150 barrier, with the bears back in control, driving prices back towards multi-year troughs.

GBP/JPY rejected below 150 handle

Currently, GBP/JPY tumbles -1.37% to 149.37, now heading towards fresh more than three-year lows struck at 149.21 in the last hour. The pound came under fresh selling pressure against its Japanese counterpart after sluggish UK inflation report dragged the UK 10-year Gilt yields to a new record low of 1.161%, thereby, pulling the cable southwards along with it.

A softer CPI reading added to the ongoing Brexit concerns and posed double whammy for the pound, as the BOE may not be in a rush to raise interest rates, which it has held at a record low level since March 2009.

With the UK CPI data out of the way, focus now remains on the US retail sales due later in the American session for further momentum on the cross.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 151 (round number), above which 151.84 (5-DMA) would be tested. On the flip side, support is seen at 149 (round number) that at 148.01 (daily S2).