GBP/JPY continues to face pressure near the 191.50 mark during early trading on Wednesday, following the release of new UK inflation data. The Office for National Statistics (ONS) reported that the Consumer Price Index (CPI) climbed 3.0% year-over-year for January, a notable increase from December’s 2.5% and surpassing market expectations of a 2.8% rise.

This uptick in inflation reflects growing concerns among traders regarding the potential tightening of monetary policy by the Bank of England. As a result, the GBP/JPY cross has not only struggled to maintain upward momentum but has remained capped below critical resistance levels. Analysts predict continued volatility in this currency pair as traders process the implications of the latest inflation figures.

Market participants are likely to keep a close eye on forthcoming data that could influence interest rate expectations and shape the direction of GBP/JPY in the near term. The interplay between inflation readings and central bank policies will be pivotal in determining the pair’s trajectory going forward.