GBP/JPY upside falters near 141.30, 55-hour SMA

The move up in the cross met resistance near 141.30.
All eyes remain on the Sterling and PM Theresa May.
BoJ meeting expected later in the week.

Pablo Piovano FXStreet

The daily upside in GBP/JPY appears to have found some important resistance in the 141.30 region, where sits the key 55-hour SMA.

GBP/JPY focused on May’s ‘Plan B’

The cross is navigating the second consecutive day with losses so far after being rejected from new YTD peaks just above 142.00 the figure late last week.

In the meantime, GBP/JPY keeps the selling bias unaltered after UK’s T.May said an extension of Article 50 appears very unlikely, while the possibility of a second referendum is almost ruled out, as she believes this option has not majority in Parliament.

Moving forward, the key monthly report on the UK labour market is due tomorrow, while the Bank of Japan monetary policy meeting is expected on Wednesday.

GBP/JPY key levels

As the moment the cross is losing 0.20% at 140.99 facing the next support at 140.68 (low Jan.21) seconded by 139.74 (10-day SMA) and finally 137.36 (low Jan.15). On the other hand, a break above 142.22 (high Jan.17) would expose 142.87 (55-day SMA) and then 143.93 (high Dec.13 2018).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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