GBP/JPY clocks 2-week high ahead of UK retail sales release

GBP/JPY rose to a two-week high of 149.40 ahead of the UK data, which could show consumer spending as represented by retail sales dropped in September.

Trades above 4-hour 50-MA

At the time of writing, the cross is trading at 149.35 levels. The 4-hour 50-MA is located at 149.13.

UK retail sales are seen falling 0.1% m/m in September. Year-on-year growth is seen slowing to 2.1% from 2.4%. Core retail sales (ex-fuel) are expected to print at 2.4% y/y and 0.1% m/m. Lead indicators suggest the decline in the retail sales could be much less than what economists are calling for.

A better-than-expected retail sales figure could strengthen the Pound, although sustainability of the gains depends on the outcome of the Brexit summit to be held later today.

GBP/JPY Technical Levels

The immediate resistance is lined up at 149.75 (Sep. 29 low) ahead of 150.00 (zero levels) and 150.20 (Sep. 29 low). On the downside, breach of support at 149.01 (session low) could yield 148.70 (5-DMA) and 148.47 (10-DMA).