GBP/JPY stabilizes around ¥149.00 on weak UK data, Japanese warning

The GBP/JPY is trading just under ¥149.00 as the trading week draws to a close.
A poor result on UK retail sales and a warning about an intervention by Japan weighed on the pair.
The technical picture remains bearish.

Yohay Elam FXStreet

The GBP/JPY is trading near the lower end of Friday's trading range, closer to the low of ¥148.78 than the high of ¥149.96. The cross is trading sideways in the American session after more significant moves to the downside earlier. Early in the day, Japan's Finance Minister Taro Aso said that the government is firmly watching movements in foreign exchange markets. This warning helped the yen weaken. USD/JPY had already reached a 15-month low before bouncing. The weakening of the yen was also felt in the GBP/JPY.

Later on, the UK published its first retail sales report for 2018, and it was a disappointment: a monthly growth rate of only 0.1% against an increase of 0.5% that was expected. Also, Brexit worries weigh on the pound as well amid a summit between German Chancellor Angela Merkel and UK PM Theresa May in Berlin.

US stock markets are slightly higher, having a minor impact on the cross in comparison to previous days when stocks and the GBP/JPY traded in a direct correlation.

The technical picture for GBP/JPY remains bearish. The downtrend on the long-term charts is clear. Resistance awaits at ¥150.00, a round number, the 23.6% retracement from the recent downfall )¥156.60 to ¥148.00. Next up is ¥151.30, the 38.2% level and ¥152.73, the February 8 high. On the downside, ¥148.78 is the immediate low, followed by ¥148.00 seen earlier this week and ¥146.97, the November 27 low.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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