GBP/JPY retakes 136.00 and beyond after UK retail sales

After Wednesday's brief pause, the GBP/JPY cross resumed with its near-term and moved within striking distance of two-month high touched yesterday. 

Currently trading comfortable above 136.00 handle, the cross caught fresh bids after UK retail sales growth surpassed even the most optimistic estimates and came-in at 1.9% in October as compared to 0.4% expected and a tepid growth of 0.1% recorded in September. Today's upbeat monthly retail sales data helped the cross to maintain its bid tone for tenth session in the previous eleven. 

Adding to this, a range-bound price-action around the USD/JPY pair, is further supporting the bid tone surrounding the cross. However, the prevalent cautious sentiment, as depicted by negative European equity indices, is boosting the Japanese Yen's safe-haven demand and capping any further up-mov for the cross.

With UK economic data out of the way, broader risk sentiment would continue to derive the safe-haven demand and eventually drive the cross from current levels.

Technical levels to watch

From current levels, 136.60 level is likely to act as immediate hurdle above which the pair is likely to surpass 137.00 handle and aim towards 137.50 resistance area. On the downside, sustained weakness below 136.00 handle might now trigger a near-term corrective slide to 134.20-134.00 support area with 135.00 psychological mark acting as intermediate support.