GBP/JPY – Can British Pound Overcome This Vs Japanese Yen?
Aayush Jindal
Key Highlights
The British Pound started a short-term recovery from the 141.80 low against the Japanese Yen,, but struggled to gain momentum.
There is a monster bearish trend line with resistance at 143.10 on the 4-hours chart of GBP/JPY.
Today in the UK, the British Retail Consortium (BRC) Like-For-Like Retail Sales figure for May 2017 was released, which came in at -0.4%.
Today, the Euro Zone Retail Sales for April 2017 will be released, which is forecasted to increase by 0.2% (MoM).
GBPJPY Technical Analysis
The British Pound started a downtrend from 148.10 against the Japanese Yen in May 2017. The GBP/JPY pair is currently attempting a recovery from 141.80, but faces a major resistance at 143.10.Looking at the 4-hours chart, the pair is correcting from the 141.86 low, and moved above the 23.6% Fib retracement level of the last decline from the 43.95 high to 141.86 low.However, there is a monster bearish trend line with resistance at 143.10. The highlighted trend line acted as a barrier on many occasions, which is why a break above 143.10-50 won’t be easy.Both the 100 and 200 simple moving averages (H4) are also waiting at 143.90 to act as a strong resistance.To sum up, the pair faces a huge task ahead and may face a lot of selling pressure if moves towards 143.10 or 143.40. On the downside, a break below 142.00 could push the pair towards 141.80 or even 141.50.
British Retail Consortium (BRC) Like-For-Like Retail Sales
Today in the UK, the British Retail Consortium (BRC) Like-For-Like Retail Sales figure for May 2017 was released. The market was expecting a decline of 0.5% in May 2017, compared with May 2016.The actual result was a point better, as the BRC Like-For-Like Retail Sales declined by 0.4%. The report added that “In May 2017, online sales represented 22.1% of total Non-Food sales in the UK, against 21.2% in May 2016. On a 3-month basis, penetration rate was 21.9%”.Overall, there was no relief for British Pound buyers, and the GBP/JPY pair may soon break 142.00 for more declines.
Economic Releases to Watch Today
RBA Interest Rate Decision – Forecast 1.5%, versus 1.5% previous.
Euro Zone Sentix Investor Confidence for June 2017 - Forecast 27.5, versus 27.4 previous.
Euro Zone Retail Sales for April 2017 (YoY) - Forecast +2.3%, versus +2.3% previous.
Euro Zone Retail Sales for April 2017 (MoM) - Forecast +0.2%, versus +0.3% previous.
Looking at the 4-hours chart, the pair is correcting from the 141.86 low, and moved above the 23.6% Fib retracement level of the last decline from the 43.95 high to 141.86 low.However, there is a monster bearish trend line with resistance at 143.10. The highlighted trend line acted as a barrier on many occasions, which is why a break above 143.10-50 won’t be easy.Both the 100 and 200 simple moving averages (H4) are also waiting at 143.90 to act as a strong resistance.To sum up, the pair faces a huge task ahead and may face a lot of selling pressure if moves towards 143.10 or 143.40. On the downside, a break below 142.00 could push the pair towards 141.80 or even 141.50.