GBP/JPY Price Analysis: Stays pressured towards 165.00 after UK Retail Sales
FXStreet · 24 Jun 2022 18.5K Views
  • GBP/JPY traders remain bearish for the third consecutive day.
  • UK Retail Sales marked disappointment for May even as MoM numbers dropped less than expected.
  • Fortnight-old horizontal hurdle restricts immediate upside, 50-SMA lures bears.

GBP/JPY seesaws around 165.40 during the initial hour of Friday’s London open. In doing so, the cross-currency pair stays on the bear’s radar for the third consecutive day as the UK Retail Sales failed to impress GBP buyers. However, firmer yields seem to probe the pair sellers of late.

That said, UK Retail Sales improved from -0.7% expectations to -0.5% MoM, versus downwardly revised 0.4% prior. However, the slump in the yearly figures, to -4.7% from -5.7% previous readings and -4.5% forecast, seems to favor the GBP/JPY sellers of late.

Technically, the quote’s sustained trading below a two-week-long horizontal resistance joins bearish MACD signals to hint at the further downside.

Though, the 50-SMA level surrounding 164.70 puts a floor under the GBP/JPY prices.

Also challenging the pair sellers is the mid-June swing high near 163.80 and the 23.6% Fibonacci retracement of June 09-16 downside, around 162.00.

On the contrary, recovery moves beyond the aforementioned horizontal resistance, surrounding 165.75-90, needs validation from 167.40 and 167.85 before challenging the monthly peak of 168.73.

It’s worth observing that the GBP/JPY pair’s successful trading above 168.73 won’t hesitate to conquer the 170.00 round figures.

GBP/JPY: Four-hour chart

Trend: Further weakness expected

Additional important levels

Today last price 165.33
Today Daily Change -0.10
Today Daily Change % -0.06
Today daily open 165.43
Daily SMA20 164.51
Daily SMA50 162.84
Daily SMA100 160.13
Daily SMA200 156.87
Previous Daily High 167.23
Previous Daily Low 164.66
Previous Weekly High 166.22
Previous Weekly Low 160
Previous Monthly High 163.91
Previous Monthly Low 155.6
Daily Fibonacci 38.2% 165.64
Daily Fibonacci 61.8% 166.25
Daily Pivot Point S1 164.32
Daily Pivot Point S2 163.21
Daily Pivot Point S3 161.75
Daily Pivot Point R1 166.89
Daily Pivot Point R2 168.34
Daily Pivot Point R3 169.45

Affected Trading Instrument

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