GBP/JPY stalls recovery, drops back to 140.00

GBP/JPY tracked the bounce seen in the GBP/USD pair across the board, in response to increased odds of a Soft Brexit, after the UK PM May’s Conservatives sought a minority in the UK election.

However, the recovery in the cross ran into resistances located around 141 handle on multiple occasions, as the European traders hit their desk and sell-off the GBP in a spontaneous reaction to the overnight result of the UK vote.

However, the losses remain capped amid a better risk sentiment, keeping the JPY buyers at bay. The USD/JPY pair advances +0.33% to 110.25, hovering close to daily tops of 110.36.

Next of note for the spot remains the UK macro news, in the form of industrial output and trade figures due later today, ahead of the US President Trump’s presser. Meanwhile, the immediate focus now remains on the UK PM May’s speech scheduled at 0900GMT.

Technical Levels

Higher side: 141 (key resistance), 141.69 (previous low), 142 (zero figure)

Lower side: 139.56 (multi-week low), 139.17 (Apr 21 low), 138.50 (psychological levels)