GBP/JPY reverses Monday’s steep losses, retakes 140.00 mark and beyond

After an initial slide to a four-day low near mid-138.00s, the GBP/JPY cross regained traction and built on to its momentum back above 140.00 mark. 

Currently trading around 140.60 level, testing fresh session peaks, the cross caught fresh bids and witnessed a sharp up-move after UK economic releases - Mortgage Approvals, BoE’s Consumer Credit, M4 Money Supply and Net Lending to Individuals, came-in to show above expected readings. Moreover, and offered tone around the Japanese Yen provided an additional boost to the pair's strong up-move on Tuesday. 

Meanwhile, possibilities of short-term stops getting triggered, on a sustained move above 140.00 psychological mark, could have further contributed to strong up-move in the past hour, helping the cross to erased majority of Monday's steep losses. 

With UK economic releases out of the way, fresh news / developments related to OPEC output deal and US macro data - GDP print and consumer confidence index, would drive investor risk-appetite, eventually determine safe-haven demand for the Japanese Yen and provide further impetus for the cross.

Technical levels to watch

Immediate upside resistance is seen at 140.84 (yesterday's high) above which the cross is likely to aim towards 141.74 (Nov. 25 high) ahead of 142.40 (July 21 high). On the downside, immediate support is now pegged at 140.00 handle, which if broken is likely to drag the cross initially towards 139.50 en-route 139.00-138.90 strong horizontal support.