The Great Britain Pound (GBP) fell against the Japanese Yen (JPY) on Wednesday, dragging the price of GBPJPY to less than 144.25 following the release of some key economic news. The technical bias remains bearish because of a lower high in the recent upside rally on the daily timeframe.

Technical Analysis

The British Pound faced a lot of sellers recently, and declined below the 144.00 handle against the Japanese yen to trade as low as 143.49. The GBPJPY started correcting higher later, and settled above the 23.6% Fib retracement level of the last decline from the 145.71 high to 143.49 low.

Currently, the pair is struggling near a major confluence area of 144.60 formed with a couple of bearish trend lines on the hourly chart.

If there is a break above the highlighted confluence area at 144.60, there is a chance of more gains in the short term.

Japan’s Industrial Production

Industrial production in Japan rose less-than-expected last month, preliminary data showed on Tuesday. In a report, the Ministry of Economy, Trade and Industry said that industrial production rose to a seasonally adjusted 1.5%, from 0.0% in the preceding month. Analysts had expected industrial production to rise 1.6% last month.

Japan’s Retail Sales

Japanese retail sales rose more-than-expected last month, official data showed on Tuesday. In a report, the Ministry of Economy Trade and Industry said that retail sales rose to a seasonally adjusted annual rate of 1.7%, from -0.1% in the preceding month. Analysts had expected retail sales to rise at annual rate of to 0.9% last month.

Trade Idea

Considering the overall technical and fundamental outlook, buying the pair on a breakout above 144.60 appears to be a good strategy in short to medium term.