GBP/JPY surges through 151.00 mark, back closer to yearly tops post-UK retail sales
|The GBP/JPY cross held within a three-day old consolidative range and has now jumped to the top end of its trading range, beyond the 151.00 handle on stellar UK retail sales data.
Data released from the UK showed retail sales recorded a strong m-o-m growth of 1.0%, with yearly rate jumping to 2.4% in August. Also excluding fuel items, sales recorded a healthy monthly growth of 1.0% and the yearly rate spiked to 2.8% during the reported period.
• UK retail sales unexpectedly jump in August
The readings surpassed even the most optimistic estimates consensus estimates and provided a fresh bullish impetus to the British Pound.
Meanwhile, a modest pickup in the Japanese Yen’s safe-haven demand, especially after the US President Donald Trump's latest warning to totally destroy N. Korea if threatened, coupled with data showing Japanese exports surged at the fastest pace in nearly 4 years, might now contribute towards keeping a lid on the pair’s strong up-move.
• Blue House: Trump's warning to N. Korea 'firm and specific'
With the key UK data out of the way, the FOMC-led volatility in the FX market would now be looked upon for some fresh trading impetus later during the NY trading session.
Technical levels to watch
A follow through weakness below the 150.00 handle is likely to trigger a near-term corrective slide an turn the cross vulnerable to break below the 149.00 mark and head towards testing its next support near the 148.30-25 region.
On the upside, momentum beyond the 151.00 handle might continue to confront fresh supply near the 151.50-60 region, which if cleared could lift the cross even beyond the 152.00 handle towards its next hurdle near the 152.20-25 region.
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