GBP/JPY finds some support near 141.00 handle, still deep in the red post-UK data
| • UK manufacturing/industrial production data beat market expectations.
• In-line UK Q2 GDP growth figures provide a minor lift to the British Pound.
• Risk-off mood underpins JPY’s safe-haven demand and caps attempted recovery.
The GBP/JPY cross continued with its bearish slide for the eight consecutive sessions on Friday but has managed to recover a part of its early decline to the lowest level since late-August 2017.
The cross managed to find decent support near the 141.00 handle and was further supported by better-than-expected UK manufacturing/industrial production data. Adding to this, the UK goods trade balance data also bettered market expectations, which coupled with in-line prelim Q2 GDP growth figures, provided a minor lift in the last hour.
However, the prevalent risk-off mood, as depicted by a sea of red across global equity markets, continued underpinning the Japanese Yen's safe-haven demand and kept a lid on any meaningful up-move. This, against the backdrop of concerns over a no-deal Brexit, might further contribute towards capping any meaningful near-term recovery for the cross.
Technical levels to watch
The 141.00 handle remains the last line of defence for the bulls, which if broken might turn the cross vulnerable to aim towards challenging the key 140.00 psychological mark. On the flip side, any meaningful bounce is likely to confront immediate resistance near the 141.70 area and is closely followed by the 142.00 handle.
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