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  • The Guppy is seeing tentative pushes higher as markets hope for a positive outcome from US-China talks.
  • The Sterling saw Retail Sales surprise to the upside, helping to put a floor under recent bearish action.

The GBP/JPY is continuing to drift higher from the week’s low of 139.90, currently testing on the bullish side of the 141.00 technical handle; though the sterling is steeply off highs in August, risk sentiment is seeing some mild improvement as US-China trade talks are set to resume and markets are grasping at the hope that current trade tensions will see a peaceable resolution.

Retail Sales figures for the Sterling were better than expected, turning the tide of middling economic figures this week that hung the GBP out to dry with inflation data for the UK that barely met expectations.

Friday brings little of note for both the GBP and the JPY on the economic calendar, but markets are closely watching for signs of rising US-China tensions as well as the ongoing Turkey debacle with traders keeping one foot squarely planted in the safe-haven Yen.

GBP/JPY levels to watch

The Guppy is sticking close to a new 12-month bottom at 139.90, but the week still remains in bearish territory overall, off of the week’s high of 142.45 with further resistance at the previous week’s high of 144.70, while support remains thin from yesterday’s last swing low at 140.50.