GBP/JPY plummets to 7-week lows, now eyeing 141.00 handle
|The GBP/JPY cross extended previous session's break down momentum below the very important 200-day SMA and tumbled to 7-week lows during early European session on Friday.
Currently trading around the 141.35-30 region, the cross extended post-BoE bearish slide and has now dropped over 550-pips from 146.80 level touched last week. The global flight to safety, amid rising geopolitical tensions between the US and N. Korea, continued lifting the Japanese Yen across the board.
Adding to this, last week's perceived dovish BoE monetary policy decision, coupled with Brexit uncertainties have been denting sentiment surrounding the British Pound and further collaborated to the pair's sharp downslide to the lowest level since June 23.
• GBP: Performance under pressure – Nomura
In absence of any major market moving economic releases from the UK, broader market risk sentiment would continue to act as an exclusive driver of the pair's movement on the last trading day of the week.
Technical levels to watch
From current levels, the 141.00 handle is likely to act as immediate support, below which the cross is likely to accelerate the fall towards 140.70 horizontal level ahead of 140.40-35 support.
On the upside, any recovery move might now confront fresh supply near the 141.85 region (200-day SMA), above which a bout of short-covering could lift the cross towards 142.55-60 intermediate resistance en-route the 143.00 handle.
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