GBP/JPY rejected at 140.00 mark, drops to session low ahead of UK GDP

The GBP/JPY cross failed to build on early strength to the key 140.00 psychological mark and has now drifted into negative territory ahead of the UK macro data.

Currently trading around 139.30-25 region, testing session lows, the cross ran through some fresh supply at higher level and faded a bullish spike to weekly tops as traders seemed to reposition themselves ahead of the final UK GDP print and quarterly current account data for the fourth quarter of 2016.

   •  When is UK GDP and how could affect GBP/USD?

Meanwhile, a mildly cautious opening for the European equity indices extended some support to the Japanese Yen's safe-haven appeal and further collaborated to the pair's sharp retracement during early European session.

The cross on Thursday staged a remarkable recovery from the vicinity of 2-1/2 month lows as market participants now look forward to the developments surrounding the Brexit negotiations and evaluate the UK economic outlook following its exit from the European Union. 

Technical levels to watch

A follow through retracement below the 139.00 handle is likely to accelerate the slide towards 138.30 support before the cross eventually heads back to retest 138.00 round figure mark. On the upside, momentum back above 139.65 level could lift the cross back towards the 140.00 handle, en-route 140.30-35 strong hurdle.