GBP/JPY bounces in tandem with Cable, near 139.50

Dhwani Mehta FXStreet

The GBP/JPY cross is extending its gradual recovery path near 139.50 levels, mainly in response to fresh bid tone caught by GBP/USD amid renewed USD supply.

GBP/JPY well supported above 138.98 – 50-DMA

The GBP/JPY pair now advances +0.29% to 139.53, heading for a test of next upside barrier placed at 140 levels. The spot tracks the renewed upside in cable, as the major benefits from broad based US selling, with investors wary ahead of the US treasury secretary Mnuchin’s speech. Recall that Mnuchin and Trump both have talked down the US currency in their previous media appearances.

On the other hand, the USD/JPY pair consolidates just below 109 handle, providing little impetus to the GBP/JPY cross. Hence, markets now shifts their attention towards the US datasets lined up for release in the NA session.

GBP/JPY: Technical Levels

Higher side: 140.03 (Tuesday’s tops), 140.47 (100-DMA), 140.77 (classic R2/ Fib R3)

Lower side: 139.04/138.98 (daily low/ 50-DMA), 138.58/50 (classic S1/ psychological levels), 137.95/78 (20 & 200-DMA)

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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