Forex Market: GBP/JPY daily forecast

During yesterday’s trading session GBP/JPY traded within the range of 172.61-173.34 and closed at 172.99.

At 6:54 GMT GBP/JPY traded at 172.92, losing 0.02% for the day. The pair touched a daily low at 172.75 at 5:40 GMT.

Fundamental view

United Kingdom

Retail Sales in the UK probably rose 0.3% in June on a monthly basis, according to the median analysts’ estimate. In May retail sales declined 0.5%.

The indicator measures the change in the volume of sales made by retailers in the UK. The information is derived from a monthly survey among major retailers. Higher volumes of retail sales mean greater consumer demand, higher production and economic growth. This is the percentage change in the index from the previous month.

On year-over-year basis, retail sales probably jumped 3,9% last month, following a 3.9% gain in May.

At the same time, core retail sales probably jumped by an annualized 4.6% in June, following a 4.7% gain in the preceding month.

The Office for National Statistics is scheduled to release an official report at 8:30 GMT. Higher-than-expected readings will certainly heighten the appeal of the pound.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 172.98. In case GBP/JPY manages to breach the first resistance level at 173.35, it will probably continue up to test 173.71. In case the second key resistance is broken, the pair will probably attempt to advance to 174.08.

If GBP/JPY manages to breach the first key support at 172.62, it will probably continue to slide and test 172.25. With this second key support broken, the movement to the downside will probably continue to 171.89.