GBP/JPY clings to gains near 149.00 mark post-UK CPI, Carney's testimony awaited

After an initial dip to 148.35 area, the GBP/JPY cross regained traction but struggled to move past the 149.00 handle following the release of latest UK inflation figures.

The UK headline CPI came-in to show that consumer prices increased 0.3% m-0-m in September, with yearly rate ticking higher to 3%. The readings were mostly in-line with expectations but failed to provide any fresh bullish impetus to the British Pound as investors seemed disappointed by a slightly softer PPI and core CPI prints.

Although today's reading did little to influence market expectations for a possible BoE rate hike move in November but traders seemed reluctant to initiate aggressive bets ahead of the BoE Governor Mark Carney's testimony before the Treasury Select Committee. 

Technical levels to watch

A follow through buying interest beyond the 149.00 handle has the potential to lift the cross towards 149.30 level en-route the key 150.00 psychological mark. 

On the flip side, weakness below 147.35 level could get extended towards the 147.00 handle, which if broken would turn the cross vulnerable to head towards testing sub-146.00 level.