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
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
