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According to the ONS, the Consumer Price Index (CPI) measure of inflation was the same as previous at 2.6 and 2.4 per cent year-over-year respectively, they missed expectations for a small increase to 2.7 and 2.5 per cent.
Looking ahead, major geopolitical risks are likely to heighten rather than dissipate in the near-term, and this could mean further demand for safe heaven asset, the yen.
At the same moments, the relative dovishness of the BOE, as well as ongoing uncertainties surrounding the current UK leadership and Brexit negotiations, are likely to remain a heavy weight on pounds. When these dynamics are combined, the bias for GBP/JPY leads towards the downside. The pair go anywhere higher than ,142.50 would be shorted, a breakdown below the current 200-day moving average and the noted 142.00 support level would be a key bearish indication for the currency pair, so I would place stop order 2 pips below this level（141.98). Such breakdown would lead to the next downside target around the key 139.00 support level.
Looking ahead, major geopolitical risks are likely to heighten rather than dissipate in the near-term, and this could mean further demand for safe heaven asset, the yen.
At the same moments, the relative dovishness of the BOE, as well as ongoing uncertainties surrounding the current UK leadership and Brexit negotiations, are likely to remain a heavy weight on pounds. When these dynamics are combined, the bias for GBP/JPY leads towards the downside. The pair go anywhere higher than ,142.50 would be shorted, a breakdown below the current 200-day moving average and the noted 142.00 support level would be a key bearish indication for the currency pair, so I would place stop order 2 pips below this level（141.98). Such breakdown would lead to the next downside target around the key 139.00 support level.
