GBP/JPY off highs, back below 142.00

After a brief test of fresh highs around 142.40, GBP/JPY lost some upside momentum and it has now returned to sub-142.00 levels.

GBP/JPY now looks to UK data

The cross keeps its upside well and sound for the second consecutive week so far, advancing more than 10% since post-‘Brexit’ lows in the 128.80 area to today’s peaks at 142.40.

Increasing speculations on further easing by the BoJ at its meeting later in the month keep weighing on the Japanese currency and bolstering the up move in the cross.

Later in the session, UK’s Retail Sales are expected to have contracted 0.6% during June, reverting May’s 0.9% gain.

GBP/JPY key levels

As the moment the cross is advancing 0.55% at 141.86 and a break above 143.25 (high Jul.15) would aim for 144.50 (50% Fibo of post-Brexit down move) and finally 149.22 (55-day sma). On the flip side, the immediate support lines up at 136.76 (20-day sma) followed by 136.19 (50% Fibo of post-Brexit down move) and then 128.77 (2016 low Jul.6).