GBP/JPY close to 149.00 handle ahead of UK’s inflation report

• The next market mover is the Inflation Report Hearings on Tuesday at 9:00 GMT. 
• GBP/JPY is trading close to the 149.00 handle. 

The GBP/JPY currency cross is trading at around 149.00, down 0.15% on Monday’s trading. 

GBP/JPY hit a ceiling at 149.65 just before the London open and then fell to 148.81 in the American session. 

Tuesday will be an important day for Sterling as the Inflation Report Hearings is scheduled to be released at 9:00 GMT. The report is issued every quarter and offers inflationary and economic projections which are taken into account by the UK’s Monetary Policy Committee (MPC) to take interest rate decisions. High volatility is expected. 

Inflation is relatively low in the UK mainly because of the foreign exchange rate of Sterling which has an effect on import and consumer prices.

Earlier in the day, the Japanese yen was relatively weak as positive news stemming from the US-China trade conflict saw little demand for the safe-haven currency. 

GBP/JPY 4-hour chart 

The currency cross is trading in a bullish channel above its 50 and 100-period simple moving averages (SMA) but below its 200-period SMA suggesting a mild upward bias. Resistances are seen at the 149.50 and 150.00 swing highs followed by the 150.50 psychological level. To to the downside, investors will likely meet resistance at the 149.00 handle and at the 148.18 swing low.