The GBP/JPY pair rallied in the short term and now is trading at 182.25 at the time of writing. After its amazing rally, we cannot exclude a temporary drop as the rate could need more bullish energy before extending its growth.
Fundamentally, the JPY crashed again after the BOJ. As you already know, the Bank Of Japan maintained the BOJ Policy Rate in the negative territory at -0.10%. Today, the Japanese data came in mixed. The Retail Sales reported 5.9% growth beating the 5.4% growth estimated, while Consumer Confidence came in at 37.1 points versus 36.1 expected. On the other hand, the Prelim Industrial Production and Housing Starts came in worse than expected.
The United Kingdom is to release the Net Lending to Individuals, Mortgage Approvals, M4 Money Supply data later.
GBP/JPY Challenges 182.28 Resistance!From the technical point of view, the GBP/JPY pair found support on the 23.6% (177.27) retracement level. It has turned to the upside after registering a false breakdown with great separation below this downside obstacle.
Now, it has passed above the downtrend line and it is challenging the 182.28 former range's resistance.
GBP/JPY Outlook!Staying above the broken downtrend line and consolidating above 182.28 could announce further growth. This is seen as a new buying opportunity as the price could extend its swing higher.