GBP/JPY reverts gains, around 136.60

The bearish mood has returned to the Sterling so far, now sending GBP/JPY back to the area of 136.30.

GBP/JPY lower on risk aversion

The cross has given away most of yesterday’s advance to the mid-137.00s as uncertainty seems to have returned to the global markets early in the Old Continent. Despite the current price action, the cross has managed to put some distance from post-Brexit lows in the 133.20 area.

Ahead in the session, UK’s second tier releases will leave the attention to the EU Leaders Summit in Brussels, where the recent ‘Brexit’ vote will be on top of the agenda.

GBP/JPY key levels

As the moment the cross is losing 0.33% at 136.69 and a break below 133.18 (post-Brexit low Jun.24) would expose 131.50 (monthly low Dec.2012) and then 125.63 (monthly low Nov.2012). On the other hand, the immediate support lines up at 137.45 (high Jun.28) followed by 140.00 (psychological level) and finally 145.34 (low Jun.16).