Key Points
- The British Pound managed to rise from the 143.50 low against the Japanese yen.
- The GBPJPY is currently correcting higher, but facing resistance near 144.60 and a couple of bearish trend lines formed on the hourly chart.
- Today in Japan, the Retail Trade figure was released by the Ministry of Economy, Trade and Industry.
- The result was better, as there was an increase of 1.7% in Nov 2016, compared with Nov 2015.
GBPJPY Technical Analysis
The British Pound faced a lot of sellers recently, and declined below the 144.00 handle against the Japanese yen to trade as low as 143.49. The GBPJPY started correcting higher later, and settled above the 23.6% Fib retracement level of the last decline from the 145.71 high to 143.49 low.
Currently, the pair is struggling near a major confluence area of 144.60 formed with a couple of bearish trend lines on the hourly chart.
If there is a break above the highlighted confluence area at 144.60, there is a chance of more gains in the short term.
Japanese Retail Trade
Recently in Japan, the Retail Trade, which captures the aggregate sales made through a business location (usually a store) was released by the Ministry of Economy, Trade and Industry.
The market was positioned for an increase of 0.9% in Nov 2016, compared with the same month a year ago. However, the result was better, as there was an increase of 1.7%. When we have a look at the monthly change, there was an increase of 0.2%, which was on the lower side compared with the last +2.5%. The Large Retailers’ Sales posted a decline of 0.3%, which was better compared with the last -1%.
Overall, it looks like there is a chance of GBPJPY breaking higher and trading towards the 145.00 handle in the near term.
