GBP/JPY holds below 192.00 following UK Retail Sales data

The GBP/JPY cross edges lower to 191.72 during the early European session on Friday. The downbeat UK Retail Sales weigh on the Pound Sterling (GBP). Additionally, the rising tension between Israel and Iran heightens concerns of a wider conflict in the Middle East, providing some support to safe-haven currencies like the Japanese Yen (JPY) and creating a headwind for the GBP/JPY cross. 

The latest data from the Office for National Statistics showed on Friday that UK Retail Sales arrived at 0% MoM in March from a 0.1% rise in the previous reading, weaker than the market expectation of 0.3%. Meanwhile, the Retail Sales ex-fuel dropped by 0.3% MoM, compared with a 0.3% increase in February. In response to the UK Retail Sales figures, The Pound Sterling (GBP) remains under selling pressure against the JPY. 

On the other hand, Bank of Japan (BoJ) board member Asahi Noguchi said on Thursday that the “main scenario is that future rate hikes are likely to be slow, but that depends on economic data, while BoJ Governor Kazuo Ueda said that the Japanese central bank may raise interest rates again if the Yen's declines considerably increase inflation. Ueda further stated that the impact of FX moves might affect the timing of the next policy shift. 
 
Early Friday, US officials told CBS News that an Israeli missile had hit Iran. Blasts were reported in the central province of Isfahan, however, it is unclear what was targeted. Iran is on high alert after Israel said that it would retaliate to an Iranian strike on Saturday night. The escalating tensions between Israel and Iran could boost the safe-haven flow demand and continue to lift the JPY.