GBP/JPY rebounds 1 big figure on solid UK retail sales

The GBP/JPY cross witnessed fresh buying-wave and rebounded more-than 1 big figure from session lows, following the release of much better-than expected UK retail sales data for the month of April

The spot rallied hard in a bid to test 145 handle, after the GBP bulls were rescued by a big beat on the UK retail trade data, which suggested that warmer weather conditions have propped up the UK shoppers to step up spending.

UK retail sales rebound way beyond expectations in April

However, a test of 145 handle looks doubtful amid fresh selling in USD/JPY, as broad based US dollar recovery loses steam. Moreover, persisting risk-off moods as a result of global sell-off in equities boosts safe-haven bids for the yen, which is expected to keep a check on the upside.  

Next on tap remains the US macro updates for fresh impetus on the buck, eventually impacting the GBP and JPY.

Technical Levels

Higher side: 144.74 (daily top), 145 (round number), 145.76 (May 4 high)

Lower side: 143.62 (daily low), 143 (key support), 142.50 (Apr 27 low)