GBP/JPY back to negative below 140.00

GBP/JPY has rapidly retreated to sub-140.00 levels as the selling interest around GBP keeps gathering traction.

GBP/JPY lower post-PMI

The cross is now extending the rejection from yesterday’s peaks in the mid-142.00s, slipping back to levels below the psychological 140.00 handle in response to poor advanced results from the Services PMI in the UK economy, coming in below expectations at 47.4 for the current month.

Further data showed the less significant Manufacturing PMI at 49.1, bettering estimates albeit below the key 50-threshold. These results do not bode well for UK’s Q2 GDP prospects, as they signal increasing concerns in both sectors following the recent ‘Brexit’ vote.

GBP/JPY key levels

As the moment the cross is retreating 0.05% at 139.95 facing the next support at 136.68 (20-day sma) followed by 136.19 (50% Fibo of post-Brexit down move) and then 128.77 (2016 low Jul.6). On the other hand, a break above 143.25 (high Jul.15) would aim for 144.50 (50% Fibo of post-Brexit down move) and finally 148.93 (55-day sma).