GBP/JPY Price Analysis: Hits eight-year high, erases earlier gains and clings to 188.00

• GBP/JPY fluctuates, impacted by Japanese CPI and weak UK retail sales; currently at 188.11.
• Bullish bias persists, but a close below 188.22 may trigger retracement towards 187.00 and potential support levels.
• Break above 188.00 sets the stage for further gains, targeting YTD high at 188.92 and potentially reaching 190.00.

GBP/JPY seesaws late in the North American session but is down 0.05% so far after trading within a 150 pips range courtesy of CPI data from Japan and weaker retail sales from the UK. Therefore, the pair traveled within its daily and eight-year high and low of 188.92/187.40 before settling at current exchange rates. At the time of writing, the cross trades at 188.11.

From a technical standpoint, the pair remains bullishly biased, but a daily close below January’s 18 one at 188.22 could initially open the door for a retracement toward the 187.00 figure. Further downside sentiment could drag the GBP/JPY exchange rate towards the Tenkan-Sen at 185.84 before challenging the Senkou Span A at 184.74.

On the contrary, a daily close above 188.00 could pave the way for further upside, with the year-to-date (YTD) high in place at 188.92, ahead of 189.00. Further upside is seen once those levels are cleared on its way to 190.00.

GBP/JPY Price Action – Daily Chart

GBP/JPY Technical Levels