The GBP/JPY gained slightly after upbeat UK retail sales. It hit an intraday high of 190.92 and is currently trading around 190.33. Intraday trend is bearish as long as resistance 191 holds.
Retail Sales Surge
UK retail sales rebounded strongly in January 2025, increasing 1.7% from the previous month and exceeding market forecasts. The rise is a welcome turnaround after a revised 0.6% decline in December 2024. The Office for National Statistics (ONS) attributes the overall rise to a steep increase in food store sales volumes. Although year-on-year sales increased 1.0%, this is a deceleration from last month's 2.8% growth. Despite positive monthly figures, broader trends are for a fall of 0.6% in sales volumes over the past three months when compared with the earlier period but an increase of 1.4% with the same quarter last year
Technical Analysis of GBP/JPY
The GBP/JPY pair is trading below 34 and 55 EMA (Short-term) and 200 EMA (long-term) on the 4-hour chart, confirming a bearish trend. Immediate resistance is at 191; a breach above this level targets of 192.20. Any close above 192.20 in 4-hour chart confirms further bullishness. Downside support is at 190.29 with additional levels at 189.70/189/188/187.25/185.
Market Indicators
CCI (50)- Bearish
Directional movement index - Neutral
It is recommended to sell on rallies around 190.75-80 with a stop-loss at 192 for a TP of 188.
