Key Points
- The British Pound recently traded lower towards 143.50 vs the Japanese yen where it found support.
- The GBPJPY pair is currently trading higher, and following a couple of bullish trend lines formed on the hourly chart.
- In the UK today, the British Retail Consortium (BRC) Shop Price Index was released.
- The result was mixed, as there was a decline of 1.4%, which was lower compared with the last decrease of 1.7%.
GBPJPY Technical Analysis
The British pound after trading as high as 145.40 against the Japanese yen dropped. The downside move in GBPJPY was stopped near a bullish trend line on the hourly chart at 143.50. The pair is currently moving higher, and following a couple of bullish trend lines.
It has already moved above the 50% Fib retracement level of the last drop from the 145.40 high to 143.50 low, but finding sellers near the 76.4% Fib level of the same wave.
The pair is currently moving down slightly, but likely to find support near the same trend lines at 144.40-30.
UK BRC Shop Price Index
Recently in the UK, the British Retail Consortium (BRC) Shop Price Index, which measures price changes in the popular retail outlets in the UK was released. The market was aligned for no major change from the last decline of 1.7%.
The result was mixed, as there was a decline of 1.4%, lower compared with the last decrease of 1.7%. Commenting on the result, the Chief Executive, British Retail Consortium, Helen Dickinson OBE, stated “December saw an easing of shop price deflation. Prices were down 1.4% compared to last year, but the majority of the categories we monitor, particularly non-food, saw month-on-month increases in prices, with clothing and footwear seeing month-on-month inflation for the first time in nearly two years.”
Overall, the British pound remains supported on the downside above 144.30-40, and may rise towards 144.80-90 in the short term.
