GBP/JPY remains weak near 195.00 despite upbeat UK Retail Sales data

• GBP/JPY softens to around 195.00 in Friday's early European session. 
• UK Retail Sales climbed 1.0% MoM in February, stronger than expected. 
• Tokyo CPI inflation exceeded forecasts, keeping the BoJ on the rate hike path. 

The GBP/JPY cross weakens to near 195.00 during the early European session on Friday. The stronger UK economic data fails to boost the Pound Sterling (GBP) against the Japanese Yen (JPY). 

Data released by the Office for National Statistics (ONS) showed on Friday that the UK Retail Sales increased 1.0% MoM in February versus a rise of 1.7% in January. This figure came in above the market consensus of a decline of 0.3%. 

On an annual basis, Retail Sales jumped 2.2% in February compared to a rise of 0.6% (revised from 1.0%) prior, better than the estimation of 0.5%. The GBP remains weak in an immediate reaction to the upbeat UK Retail Sales data. 

On the JPY's front, the cost of living in Tokyo rose more than expected from the previous month, keeping the Bank of Japan (BoJ) on track for further interest rate hikes. This, in turn, could underpin the Japanese Yen against the GBP. Data released earlier this Friday showed that the headline Consumer Price Index (CPI) in Tokyo climbed 2.9% in March from 2.8% in February. Additionally, Tokyo Core CPI, which excludes volatile fresh food prices, rose to 2.4% during the reported month from 2.2% in February.