- British Pound traded sharply against the Japanese yen recently, but may recover moving ahead.
- There is a steep bearish trend line formed on the hourly chart of the GBPJPY pair, which might be breached to clear the way for more upsides.
- UK Retail Sales released by the National Statistics posted a decline of 0.4% in Feb 2016, whereas the forecast was lined up for a decrease of 0.7%.
- Moreover, the UK Retail Sales ex-fuel also came better than forecast and posted a decline of 0.2% in Feb 2016.
The British Pound recently declined towards the 158.50 level, where it found bids against the Japanese yen. The GBPJPY pair is currently making an attempt to break a steep bearish trend line formed on the hourly chart.
If the pair manages to clear the resistance area, then a move towards the 38.2% Fib retracement level of the last drop from the 161.49 high to 158.44 low is possible.
On the downside, the 158.50-40 support area holds a lot of importance, as a break below it may take GBPJPY towards 158.00.
UK Retail Sales
The UK today saw a couple of major economic releases, including the Retail sales, which measures the total receipts of retail stores by the National Statistics. The forecast was slated for a decline of 0.7% in the sales in Feb 2016, compared with the previous month. However, the outcome was better than expected, as the UK retail sales declined by 0.4%.
The report also added that “Year-on-year estimates of the quantity bought in the retail industry showed growth for the 34th consecutive month in February 2016, increasing by 3.8% compared with February 2015”.
Overall, there lies a great chance of GBPJPY breaking higher in the near term if the bulls gain control.