GBP/JPY Price Analysis: Stays pressured towards 165.00 after UK Retail Sales
|- GBP/JPY traders remain bearish for the third consecutive day.
- UK Retail Sales marked disappointment for May even as MoM numbers dropped less than expected.
- Fortnight-old horizontal hurdle restricts immediate upside, 50-SMA lures bears.
GBP/JPY seesaws around 165.40 during the initial hour of Friday’s London open. In doing so, the cross-currency pair stays on the bear’s radar for the third consecutive day as the UK Retail Sales failed to impress GBP buyers. However, firmer yields seem to probe the pair sellers of late.
That said, UK Retail Sales improved from -0.7% expectations to -0.5% MoM, versus downwardly revised 0.4% prior. However, the slump in the yearly figures, to -4.7% from -5.7% previous readings and -4.5% forecast, seems to favor the GBP/JPY sellers of late.
Technically, the quote’s sustained trading below a two-week-long horizontal resistance joins bearish MACD signals to hint at the further downside.
Though, the 50-SMA level surrounding 164.70 puts a floor under the GBP/JPY prices.
Also challenging the pair sellers is the mid-June swing high near 163.80 and the 23.6% Fibonacci retracement of June 09-16 downside, around 162.00.
On the contrary, recovery moves beyond the aforementioned horizontal resistance, surrounding 165.75-90, needs validation from 167.40 and 167.85 before challenging the monthly peak of 168.73.
It’s worth observing that the GBP/JPY pair’s successful trading above 168.73 won’t hesitate to conquer the 170.00 round figures.
GBP/JPY: Four-hour chart
Trend: Further weakness expected
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