- GBP/JPY continues to deflate, falling sharply on Thursday.
- Japanese Retail Sales came in as expected, with revisions.
- Japan’s Unemployment Rate to wrap up the trading week.
On Thursday, GBP/JPY took a dip towards the 189.00 level as the Yen gained ground following the release of Japanese Retail Sales data meeting expectations. The year-end figures for January stood at 2.3%, in line with predictions, with the previous period receiving an upward revision from 2.1% to 2.4%. The month-on-month (MoM) figure rebounded to 0.8% after a notable downward revision in the previous month from -0.8% to -2.6%.
Contrarily, Japanese Industrial Production for January fell short at -7.5%, missing the forecast of -7.3% and declining from the previous reading of 1.4%. Looking ahead, economic observers will be eyeing Japan’s Unemployment Rate scheduled for early Friday, expected to remain stable at 2.4%. Additionally, attention turns to the preliminary inflation data from the Tokyo Consumer Price Index (CPI) next Tuesday, shaping expectations for Yen traders.
GBP/JPY technical outlook
On Thursday, GBP/JPY registered a 0.8% decline as it retraced towards the 189.00 level, erasing gains made earlier in the week that peaked around 191.30. The currency pair is currently navigating through a significant resistance zone centered around the 189.00 mark.
While the short-term trend shows some weakness, it’s crucial to note that GBP/JPY remains entrenched in bullish territory. Daily candlestick patterns consistently maintain positions well above the 200-day Simple Moving Average (SMA) situated at 183.43.
