GBP/JPY hovers at 50-DMA, eyes UK retail sales data

Omkar Godbole FXStreet Contributor

The GBP/JPY pair is taking a breather following a four-day winning streak. The cross was last seen trading dead flat around the 50-DMA level of 141.76.

Focus on UK retail sales

UK retail sales are seen rising 7.3% y/y in December from November’s print of 5.9%. An upbeat would only add credence to the argument that the British economy is holding up well despite the heightened odds of Brexit.

The JPY side of the story could play a spoil sport as far as rallying on strong UK data is concerned. This is because; the uncertainty ahead of Trump inauguration is likely to keep the Japanese Yen on the front foot.

GBP/JPY Technical Levels

A break above 142.13 (previous day’s high) would signal continuation of the four-day winning streak and open doors for 143.32 (23.6% of Trump rally). On the lower side, break below the downward sloping 200-DMA of 141.10 would expose support at 140.15 (38.2% of Trump rally).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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