GBP/JPY keeps gains, retreats from 140.00

The bid tone around the British pound is helping GBP/JPY to advance after two consecutive losses on Monday, currently hovering over the 139.40/50 region.

GBP/JPY supported near 139.20

After testing daily highs beyond the psychological 140.00 handle, the cross has lost some upside momentum although it still manages to stay in the positive territory ahead of the opening bell in the Old Continent.

UK’s advanced GDP figures for the second quarter on Wednesday plus the BoJ meeting on Friday will be the main highlights ahead in the week. Market consensus expects the BoJ to announce extra easing despite recent comments by Governor Kuroda ruling out the likeliness of ‘helicopter money’.

GBP/JPY key levels

As the moment the cross is advancing 0.25% at 139.46 facing the next hurdle at 143.25 (high Jul.15) followed by 144.50 (50% Fibo of post-Brexit down move) and finally 148.27 (55-day sma). On the other hand, a breach of 136.96 (20-day sma) would open the door to 136.19 (50% Fibo of post-Brexit down move) and then 128.77 (2016 low Jul.6).