GBP/JPY back below 142.00 ahead of Carney

The selling bias around JPY continues to support the rally in GBP/JPY, currently posting strong gains in the mid-141.00s.

GBP/JPY upside capped above 143.00

After climbing as high as 143.24 during overnight trade, sellers have stepped in and triggered the ongoing knee-jerk to the 141.50/40 band.

The sharp up move from last week’s lows near 128.70 has been propped up by the strong resurgence of the risk appetite in the global markets, along with a solid rebound of the Sterling.

Later in the Old Continent, BoE’s M.Carney is due to speak following yesterday’s (unexpected?) steady stance by the ‘Old Lady’ at its meeting. Recall that MPC members have voted 8-1 favouring the current status quo in monetary policy.

GBP/JPY key levels

As the moment the cross is up 0.46% at 141.25 and a break above 143.24 (high Jul.15) would expose 144.50 (50% Fibo of post-Brexit down move) and finally 150.34 (55-day sma). On the other hand, the next support lines up at 139.64 (20-day sma) followed by 136.19 (50% Fibo of post-Brexit down move) and then 128.77 (2016 low Jul.6).