GBP/JPY hovers around 23.6% Fib

GBP/JPY is hovering around 141.565 (23.6% of June 2015 high - Oct 2016 low) ahead of the UK data which is expected to show retail sales edged up 0.9% month-on-month in January.

Stuck between 5-DMA and 10-DMA

At the time of writing, the cross was stuck between the 5-DMA and a 10-DMA level of 142.04 - 141.30 respectively. The currency pair rallied to a high of 142.81 earlier this week before falling back to 10-DMA level of 141.30.

Better-than-expected UK retail sales release could see the pair revisit 50-DMA seen today at 142.70. Meanwhile, the bid tone around the Yen could spike if the major European equities extend Thursday’s loses.

GBP/JPY Technical Levels

A break above 142.00 (zero figure) would expose 142.70 (50-DMA), above which the cross may test supply around 144.13 (Feb 1 high). On the other hand, a breakdown of support at 141.20 (session low) would expose 140.45 (Jan 31 low). The next major support is seen at 140.00 (zero figure).