GBP/JPY has retraced 23.6% of the sell-off from 2015 high

The GBP/JPY pair tested 141.61 levels in Asia, which is 23.6% Fib retracement of the sell-off from 195.89 (June 2015 high) to 124.84 (Oct 2016 low).

Poised for fifth straight week of gains

The cross was last seen trading around 141.50 levels, which is significantly higher than the weekly opening price of 137.13. Moreover, there is little data on the calendar that could trigger a 400 point drop by today’s NY closing.

If anything, the gains could be extended if the UK preliminary Q3 GDP beats estimates. A weak figure could rattle GBP bulls, although a 400 pip drop still appears a difficult task. 

GBP/JPY Technical Levels

A daily close above 141.61 (23.6% of 2015 high - 2016 low) would open doors for 144.47 (10-DMA) and 145.00 (psychological hurdle). On the downside, failure to hold above 141.00 (zero figure) would shift risk in favor of a drop to 139.85 (5-DMA) and 138.88 (Nov 21 high).