GBP/JPY peeps above 141 on Yen selling

Yen remains on the back foot in Asia despite recent Nice terror attack and falling prospects of helicopter money, pushing the GBP/JPY cross to a high of 141.62 levels.

Stuck at 38.2% Fibo

The bullish move in the cross ran out of steam on Thursday around 142.08 (38.2% of May 31 high – June 24 low). The subsequent retreat to 140.53 followed by a fresh bid wave in Asian session pushed the cross to a high of 141.62. However, the cross ran out of steam and was trading around 141.10 levels at the time of writing.

Stimulus expectations continue to keep the Yen under pressure. Meanwhile, British Pound is having a good day out there after the Bank of England surprised with a status quo policy and 8-1 vote count. Moreover, markets were expecting at least three votes in favor of a rate cut.

GBP/JPY Technical Levels

Acceptance above 142.08 (38.2% of May 31 high – June 24 low) would expose 143.00 (zero figure). A break higher could yield a test of 145.39 (June 16 low). On the other hand, a breakdown of support at 141.00 (zero figure) would open doors for a slide to 140.00 (another zero figure), under which a major support is seen at 138.23 (5-DMA).