GBP/JPY Price Analysis: Fades bounce off 200-HMA after UK Retail Sales
|- GBP/JPY struggles to defend the first daily gains in three.
- UK Retail Sales prints mixed details in June, ex-Fuel figures on MoM jumped.
- 100-HMA, two-day-old resistance line guards immediate upside.
- 50%, 61.8% Fibonacci retracement levels act as additional downside filters.
GBP/JPY buyers struggle to keep the first daily gains in three after the UK Retail Sales printed mixed figures for June. That said, the cross-currency pair grinds higher around 164.90 during the early Friday morning in Europe.
UK Retail Sales for June improved more than -0.3% expected and -0.8% prior to -0.1% MoM. A core version of the key British data, i.e. Retail Sales ex-Fuel, reverses the -0.4% market consensus and -0.1% previous readings to 0.4% positive figures.
Also read: UK Retail Sales fall 0.1% MoM in June vs. -0.3% expected
Technically, firmer MACD signals join the quote’s successful trading above the 200-HMA to keep buyers hopeful.
However, the 100-HMA and a downward sloping resistance line from Wednesday, respectively around 165.40 and 165.80, could prone the GBP/JPY upside before directing them to the weekly high of 166.25.
Alternatively, pullback moves remain elusive until staying beyond 200-HMA level of 164.50.
Even so, the 50% and 61.8% Fibonacci retracement of July 12-20 upside, near 164.00 and 163.00 in that order, could challenge the GBP/JPY bears before giving them controls.
GBP/JPY: Hourly chart
Trend: Further upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.