- A pummeled Sterling sees continued softness against the safe-haven Yen.
- Key economic figures for the UK continue to disappoint.
The GBP/JPY is trading into 146.50 as the pair winds through Friday’s Asia trading session after slipping from yesterday’s high of 147.58 after UK data once again failed to give GBP buyers reason to celebrate.
Thursday’s Retail Sales for the UK came in under expectations across the board, with the headline m/m Retail Sales for June contracting by -0.5%, flubbing the expected 0.4% reading and widening the gap against the last period’s 1.4%. GBP bulls got pushed to the sidelines as the Sterling sunk steadily against the JPY, bottoming out at 146.15.
Japan’s National Consumer Price Index (CPI) figures which dropped late on Thursday came in at 0.7%, mildly missing the expected 0.8% and remaining steady with the previous reading, though Asia-session market participants saw little reaction to the mid-tier reading.
The GBP heads into Friday’s trading on a soft tone, and early Friday’s bounce from the week’s new low could see short-sellers primed for a further move lower.
GBP/JPY Levels to watch
The Guppy’s action this week has been fairly one-sided, dropping from the week’s high of 149.30 to step into range of last week’s low, near the 146.00 major level. Continued declines will be facing support from June’s low at 143.76 while a bullish reversal will have to first clear the week’s 50% Fibonacci retracement level near 147.70.
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