GBP/JPY reverses an upward spike to 145.30

The GBP/JPY cross is seen trimming gains and now trades back under 145 handle, having stalled the recovery from three-week lows of 143.32 struck yesterday.

GBP/JPY eyes US open for fresh impetus

The spot is on a retreat, but keeps healthy gains so far this Friday, in response to a sharp rally seen in GBP/USD amid aggressive USD selling across board. Moreover, solid UK retail sales report combined with better-than expected CBI industrial orders data bolster the strength seen in the pound.

UK retail sales rebound way beyond expectations in April

United Kingdom CBI Industrial Trends Survey - Orders (MoM) registered at 9 above expectations (4) in May

The latest leg lower in the cross is mainly driven by a fresh bout of JPY buying, which dragged the USD/JPY pair lower. A retreat in the European stocks appear to have hit the risk-on trades, fuelling demand for the safe-haven yen.

Nothing of note for the cross in the session ahead, and hence, the moves will be driven by the sentiment on the Wall Street and USD dynamics.

Technical Levels

Higher side: 145 (round number), 145.32 (daily high), 145.76 (May 4 high)

Lower side: 144.01 (session low), 143.32 (May 18 low), 143 (key support)

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