GBP/JPY on track to post first weekly losses in previous six

Haresh Menghani FXStreet

After an initial uptick, the GBP/JPY cross turned lower for the fifth consecutive session and gravitated back to three-week lows touched in the previous session.

The cross has maintained its bearish bias so far this week and extended its corrective slide from closer to multi-month highs touched at the beginning of this week. A fresh wave of global risk-aversion trade was seen benefitting the Japanese Yen's safe-haven appeal and weighing on the cross.

Traders even shrugged off a modest recovery witnessed around the GBP/USD major, with the cross falling nearly 200-pips from weekly tops near the 147.60 region.

The cross has now reversed all of its gains recorded in the previous two weeks and remains on track to end the week with steep losses, snapping five consecutive weeks of winning streak.

Technical levels to watch

A follow through selling pressure below monthly lows support near 144.70 level is likely to accelerate the fall towards the 144.00 handle en-route its next support near 143.40 horizontal zone. On the flip side, any recovery back above 145.30 level now seems to confront strong hurdle near 145.75-80 region, above which the cross could head back towards 146.25-30 supply zone.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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