Key Points
- The British Pound is in an uptrend against the Japanese yen, and traded above 145.00.
- The GBPJPY pair is currently correcting lower, and testing a major bullish trend line formed on the hourly chart at 145.10.
- Today in the UK, the British Retail Consortium (BRC) Like-For-Like Retail Sales report was released.
- There result was on the lower side, as there was a rise of 0.6% in Oct 2016, which was less than the last reading 1.7%.
GBPJPY Technical Analysis
The British Pound after correcting towards 144.00 traded higher against the Japanese yen and moved above 145.00. The GBPJPY pair is currently in an uptrend, and following a bullish trend line formed on the hourly chart.
The pair is currently testing the same trend line support along with the 38.2% fib retracement level of the last wave from the 144.04 low to 145.61 high.
So, there is a chance that the pair may bounce in the short term and retest the last swing high of 145.61.
British Retail Consortium (BRC) Retail Sales
Today in the UK, the British Retail Consortium (BRC) Like-For-Like Retail Sales, which measures changes in the actual value of retail sales was released.
The market was expecting a rise of more than 1% in Oct 2016, compared with the same month a year ago. However, the result was a bit lower, as there was a rise of 0.6%. The report stated that “On a total basis, sales rose 1.3%, against a 0.7% increase in November 2015. This is slightly below the 3-month average of 1.6% but slightly faster than the 12-month average of 1.1%. Over the three-months to November, Food sales were flat on a like-for-like basis and increased 1.5% on a total basis, clearly ahead of the 12-month Total average growth of 0.7%”.
Overall, the GBPJPY is trading near a major support area above 145.00, which may produce a bounce in the short term.
