GBP/JPY drops below 188.00 ahead of UK data

By FXStreet FXStreet (Mumbai) – The demand for the JPY spiked as the Japanese trade balance swung back into surplus for the first time since March, thereby pushing the GBP/JPY below 188.00 ahead of UK retail sales data.

Eyes UK data

The immediate focus now is on the UK data, which could show the retail sales growth slowed down in October, following a sharp rise in September on account of the Rugby world cup event. However, there is still a possibility of a positive surprise as the Rugby world cup lasted till Oct end.

It remains to be seen if the investors cheer positive surprise, given the dovish stance adopted by the BOE at its Quarter Inflation Report (QIR) event earlier this month.

GBP/JPY Technical Levels

The immediate support is seen at 187.67 (100-DMA), under which the losses could be extended to 186.90 (10-DMA). On the other side, resistance is seen at 188.39 (previous day’s high) and 188.80 (daily high).
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Source:: FX Street