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GBP/JPY's love affair with key falling trendline continues, eyes UK retail sales

2018-6-14 11:24:43Basics of Trading
GBP/JPY's love affair with key falling trendline continues, eyes UK retail sales

The GBP/JPY is having a tough time scaling the falling trendline (drawn from April 18 high and April 26 high) for the third straight day.


At press time, the pair is trading at trendline hurdle of 147.50 and could see an aggressive move above the significant obstacle if the UK retail sales number betters estimates.


The data, due at 08:30GMT, are expected to show consumption as represented by retail sales rose 0.5 percent month-on-month in May following a 1.6 percent rise in April. Also, anti-risk JPY may run into offers, pushing GBP/JPY higher if the equity markets pick up a bid.


On the other hand, a weaker-than-expected UK retail sales could push GBP/JPY below 147.21 (previous day's doji candle low), confirming a bearish doji reversal.

GBP/JPY Technical Levels


A close below 147.21 would mean the rally from the May 29 low of 143.19 has ended and the bears have taken over. Support is seen at 147.09 (10-day MA), 146.09 (June 8 low), and 145.27 (May 25 low).


Meanwhile, resistance is lined up at 147.99 (June 12 high), 148.91 (50-day MA), and 149.33 (100-day MA).