GBP/JPY: bearish consolidation around 200-DMA

The GBP/JPY pair ran through fresh offers near session peak near 140.75 area and dropped to 140.00 neighborhood, the lowest level since Jan. 18.

The pair, however, has managed to bounce off few pips from session lows and is currently trading at 140.40-45 band, around the very important 200-day SMA. A fresh wave of risk-off mood negated the disappointing release of yearly earnings data from Japan.  

Moreover, persistent selling pressure around the British Pound, against the backdrop of perceived dovish statement from BoE on Thursday and disappointing reading on the UK services sector out on Friday, also collaborated towards restricting any swift recovery. 

With an empty UK economic docket, the cross remains at the mercy of broader market risk-sentiment that would derive the Japanese Yen’s safe-haven demand and provide some impetus for short-term traders. 

Technical levels to watch

A follow through selling pressure below 140.00 psychological mark would confirm a break-down and turn the pair vulnerable to head back towards 139.00 round figure mark with some intermediate support near 139.65-60 region. 

On the upside, recovery momentum above session peak resistance near 140.75 level, leading to a subsequent strength above 141.00 level, is likely to get extended towards 141.35 resistance, en-route 142.00 handle.

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