GBP/JPY trades higher as UK retail figures beat forecasts

• Sterling bumping higher on positive UK data.
• Market sentiment is chugging along in risk-on mode.

The GBP/JPY is trading higher in the Asia session, lifting into 146.50 following upbeat UK data.

Year-on-year figures for the BRC Like-For-Like Retail Sales for May came in higher than expectations, printing at a positive 2.8%, far above the -0.8% contraction that was expected. The Sterling is catching a positive boost on the numbers as economic data for the UK begins to return to a positive swing.

Later on today will see the UK's Markit Services PMI at 08:30 GMT, expected to tick up slightly from 52.8 to 53.0, followed by a public speech by the MPC's Cunliffe at 10:00 GMT.

On the Yen side, y/y Household Spending figures for the year into April missed expectations, coming in at -1.3%, a steep contraction from the 0.8% forecast. Withering consumption spending is one of the key components that the Bank of Japan (BoJ) is struggling to overcome, and the backwards slide in household spending means Japan's central bank still has a far way to go before achieving their 2% inflation target.

GBP/JPY levels to watch

As noted by FXStreet's own Omkar Godbole, "The resistance is seen at 147.04 (5-week moving average), 147.27 (4-hour 100MA), 148.48 (50-week moving average). Meanwhile, support is lined up at 146.31 (4-hour 50MA), 144.13 (May 31 low), and 143.19 (May 29 low)."