GBP/JPY Price Analysis: Bulls approach 160.00 on upbeat UK Retail Sales
- GBP/JPY refreshes intraday high after better-than-forecast UK data.
- UK Retail Sales rose past forecasts, prior on MoM, improved on YoY during April.
- 200-EMA tests buyers, sellers need to smash weekly support line to retake control.
GBP/JPY remains on the front foot for the second consecutive day, taking the bids near 159.80 after the UK avoids data disappointment during early Friday in Europe.
That said, the UK’s Retail Sales rose past -0.2% MoM expected to 1.4%, versus upwardly revised -1.2% prior. The Retail Sales ex-Fuel also rejected the downbeat bias by rising with 1.4% MoM growth compared to -0.2% expected and -0.9% previous readouts (revised).
Also read: UK Retail Sales rebound 1.4% MoM in April vs. -0.2% expected
Following the data, GBP/JPY refreshed intraday high but is yet to cross the 200-EMA, around 159.65 by the press time. Also challenging the upside momentum is a two-day-old rising trend line near 160.10.
Should the pair buyers manage to stay firmer past 160.10, the weekly high around 161.85 will be on their radars.
Meanwhile, pullback moves remain less important until breaking the weekly support line, near 158.55 at the latest.
Following that, 61.8% Fibonacci retracement (Fibo.) of May 12-17 moves, near 158.00, will act as the last defense for the GBP/JPY buyers.
GBP/JPY: Hourly chart
Trend: Further upside expected