GBP/JPY tests hourly 100-MA below 140.00 handle

Yen strength in Asia pushed GBP/JPY cross to just below 139.67 (hourly 100-MA) before a minor recovery to 1393.80-14.00 range materialized.

Trapped between hourly 100-MA and 50-MA

At 139.90, the cross looks trapped between hourly 100-MA and hourly 50-MA level of 139.67 and 140.21 levels respectively. Bid tone around Yen gathered pace in Asia although the move lacked a fundamental trigger. Moreover, the treasury yields dipped in Asia and that could have strengthened Yen.

The losses in GBP/JPY cross also dragged Cable lower to 1.3225; down 0.25% on the day. Ahead in the day, the cross is at the mercy of monthly UK CPI release and the action in the major markets.

GBP/JPY Technical Levels

A break above 140.21 (hourly 50-MA) would open doors for 141.30 (July 18 high). A violation there could yield 142.00 (zero figure). On the other hand, a breakdown of support at 139.67 (hourly 100-MA) could see the cross target 137.77 (Friday’s low). Next major support is seen at 136.14 (hourly 200-MA).