GBP/JPY gains capped around 140.00

GBP/JPY is snapping a 4-session negative streak following increasing selling pressure on the Japanese currency, currently hovering over the mid-138.00s.

GBP/JPY bounces off 137.70

The cross met a wave of buying pressure after Japanese PM S.Abe confirmed that the new stimulus package - worth more than ¥28 trillion - would be delivered on August 2, along with a fresh 50-year tender.

The news has weakened JPY across the board and allowed the cross to clinch fresh 2-day highs in the boundaries of the psychological handle at 140.00 the figure.

Ahead in the session, UK’s Q2 GDP figures are due, ahead of a slew of releases in the Japanese docket on Friday: the BoJ monetary policy meeting, inflation figures, retail sales, industrial production, household spending and unemployment rate.

GBP/JPY key levels

As the moment the cross is advancing 0.96% at 138.72 facing the next resistance at 143.25 (high Jul.15) followed by 144.50 (50% Fibo of post-Brexit down move) and finally 147.90 (55-day sma). On the other hand, a breach of 136.87 (20-day sma) would open the door to 136.19 (50% Fibo of post-Brexit down move) and then 128.77 (2016 low Jul.6).