GBP/JPY unable to hold above 161.00, retreats modestly

GPB/JPY is about to end Thursday modestly lower after hitting earlier at 161.63, the strongest level in three weeks. Currently it trades at 160.65, down 0.15% for the day.

GBP up on data, polls

The pound is among the strongest currencies in the market as Brexit polls showed the “stay” position ahead. Today it received an extra boost after the retail sales report for April in the United Kingdom showed better-than-expected numbers, with a 1.3% gain above the 0.5% expected.

After the report the pair jumped but it failed to hold above 161.00 and pulled back as the yen recovered ground in the market. The retreat found support above 160.00 and now the pair is moving sideways in a range with support at 160.10 and resistance at 160.95.

On a weekly basis GBP/JPY is rising almost 500 pips, that is the best result of the year so far for a week. It started trading on Monday below 156.00, with a bearish bias, but a combination of a weak yen and strong pound, jumped to the upside, with price climbing back above the daily 20 and 55 moving averages.