GBP/JPY flits with trendline hurdle ahead of UK CPI release

• GBP/JPY is attempting a break above a two-month falling trendline.
• An above-forecast UK CPI reading could put a strong bid under the British Pound.

The GBP/JPY pair has been solidly bid in the last 24 hours, but a convincing move above the falling trendline (from April 18 low and April 26 low) has remained elusive.

As of writing, the pair is trading just above the trendline hurdle of 147.65. The USD/JPY pair closed above the 200-day moving average yesterday, opening doors for further Yen weakness.

So, the stage is set for GBP/JPY to scale the falling trendline hurdle in a convincing manner.  

Focus on UK CPI

The UK consumer price index (CPI), scheduled for release at 08:30 GMT, is expected to show the cost of living ticked up 2.5 perecent year-on-year in May vs 2.4 percent in April. An above-forecast reading will likely help GBP/JPY beat the trendline hurdle in a convincing manner.

On the other hand, a weaker-than-expected print risks derailing the rally in GBP/JPY.

GBP/JPY Technical Levels

Resistance: 148.11 (recent high), 148.38 (April 2 low), 148.97 (100-day moving average).

Support: 147.52 (session low), 147.05 (May 8 low), 146.82 (10-day moving average).