Key Points
- The British Pound after a sharp decline found support near 141.80 against the Japanese Yen.
- The GBPJPY pair broke a major bearish trend line with resistance at 142.50 on the hourly chart.
- Recently in Japan, the Retail Trade report for April 2017 was released by the Ministry of Economy, Trade and Industry.
- The outcome was above the forecast, as there was a rise of 3.2% in April 2017 (YoY), more than the forecast +2.3%.
GBPJPY Technical Analysis
The British Pound was under a lot of pressure lately, and moved below the 144 and 143 support levels against the Japanese Yen. The GBPJPY even traded below the 142.00 before finding support near the 141.80 level.
The pair started recovering, and moved above the 21 simple moving average and a major bearish trend line with resistance at 142.50 on the hourly chart.
At the moment, the pair is attempting a close above the 23.6% Fib retracement level of the last decline from the 145.43 high to 141.82 low. There can be a minor dip towards 142.60-50 before there is another upside push towards the 143.20 and 143.60 resistance levels.
Japan’s Retail Trade
Recently in Japan, the Retail Trade report for April 2017 was released by the Ministry of Economy, Trade and Industry. The market was positioned for the Retail Trade to rise by around 2.3% in April 2017, compared with the same month a year ago.
The result was above the forecast, as there was a rise of 3.2% in April 2017 (YoY). In terms of the monthly change, there was a rise of 1.4%, more than the last +0.2%. Even the Large Retailers’ Sales posted a good increase of 1.1%, compared with the last decline of 0.8%.
Overall, the GBPJPY may soon gain pace above 142.60, and trade towards the 143.50 resistance in the near term.
