GBP/JPY Price Analysis: Bears attack 21-DMA with eyes on UK inflation data

• GBP/JPY extends the previous day’s pullback from 10-DMA, stays pressured at weekly low.
• RSI retreat, U-turn from short-term moving averages favor further sellers.
• 153.35-30 becomes the key support, bulls need validation from three-month-old horizontal area.
• When are the UK CPIs and how could they affect GBP/USD?

GBP/JPY stays depressed near the weekly bottom, down 0.17% intraday near 155.50 as traders await UK Consumer Price Index (CPI) data during early Wednesday.

That said, the cross-currency pair’s failure to cross the 10-DMA level during the early Tuesday’s advances joins RSI retreats to direct traders to attack the 21-DMA.

It should, however, be noted that the quote’s daily closing below the 21-DMA level of 155.65 will direct the GBP/JPY bears towards the mid-November highs near 154.75.

Following that, a convergence of the 100-DMA, 50-DMA and 50% Fibonacci retracement level of July-October 2022 upside, near 153.35-30 will be crucial to watch.

Meanwhile, the corrective pullback will again aim to cross the 10-DMA level of 156.50 before jostling with multiple resistances around 157.30.

Even so, a horizontal area comprising multiple levels marked since late October, near 157.70-80, could challenge the GBP/JPY bulls before allowing them to test the year 2021 peak of 158.22.

GBP/JPY: Daily chart

Trend: Further weakness expected