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.
You may be interested
JPMorgan Chase Scores Another Bitcoin Technology PatentBrian Evans - Jul 22, 2018
Banks have shown a keen interest in Bitcoin technology over the years. Various patents have been filed by these financial institutions to explore new potential business use…
Crypto Markets See Solid Upswing, Bitcoin Pushes $7,500Brian Evans - Jul 22, 2018
Crypto markets seeing mostly green today, with total market cap up over 2% and Bitcoin pushing $7,500
Bitcoin Makes Major Headway: CFA Exam Will Now Include Crypto TopicsBrian Evans - Jul 22, 2018
Cryptocurrencies and blockchain technologies are making serious headway in the financial industry, the most recent sign being the decision by the CFA Institute, which offers the Chartered…