GBP/JPY flirting with lows, drifts back closer to 149.00 handle
| • JPY maintains its strong bid tone across the board.
• Weaker UK retail sales prompt fresh GBP selling.
The GBP/JPY cross once again met with some fresh supply near the key 150.00 psychological mark and has now dropped to session lows, around 149.20 area.
Against the backdrop of a strong bid tone surrounding the Japanese Yen, the cross lost some ground following today's the release of UK monthly retail sales data, which recorded a tepid growth of 0.1% during January.
Meanwhile, a positive trading sentiment around European equity markets, which tends to dampen the Japanese Yen's safe-haven demand did little to lend any support and a weaker tone surrounding the British Pound acting as an exclusive driver of the pair's fall on the last trading day of the week.
It would now be interesting to see if the cross is able to attract some fresh buying interest near the 149.00-148.90 support area or bears maintain their dominant position. Nevertheless, the cross remains on track for its second consecutive week of declines and might be headed for the lowest weekly close since Nov. 2017.
Technical levels to watch
On a sustained break through the 149.00 handle, the cross could be headed back towards challenging the 148.00 round figure mark before eventually aiming to test the very important 200-day SMA support near the 147.60-50 region.
Meanwhile, on the upside, any meaningful recovery attempt might continue to confront some fresh supply near the 150.00 handle, which if cleared decisively might trigger a short-covering bounce towards 150.45 intermediate resistance en-route the 151.00 handle.
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