GBP/JPY drops to 4-day low of 141.74

The broad based rally in the Japanese Yen in Asia pushed the GBP/JPY to a four-day low of 141.74.

Offered at 5-DMA

The cross was offered at 142.57 (5-DMA) earlier today, following which it chewed through the support offered by 50-DMA at 142.10 levels. The currency pair looks set o test 141.56 (23.6% Fib R of June 2015 high - Oct 2016 low).

The Pound side of the story also looks weak, given the Conservative lead over Labour has shrunk from 17 points to just one since the start of May. The Survation poll puts the Tories on 41.5%, Labour on 40.4%, the Liberal Democrats 6%, UKIP 3% and 'other' 9%.

GBP/JPY could extend losses if the European stocks suffer losses on election uncertainty.

GBP/JPY Technical Levels

The cross was last seen trading around 141.90. Breakdown of support at 141.56 (23.6% Fib R of June 2015 high-Oct 2016 low) would open up downside towards 140.74 (Mar 2 high) and 140.00 (zero levels). On the higher side, resistance is seen at 142.10 (50-DMA) could yield a re-test of 142.66 (session high) and 143.10 (previous day’s high).