GBP/JPY retreats from 139.50, clings to gains

GBP/JPY keeps the march north intact on Wednesday, although it has now returned to the sub-139.00 area after climbing as high as 139.50 in overnight trade.

GBP/JPY advances to 3-week tops

The upside momentum in the cross remains unchanged, albeit it seems to have lost part of the earlier impetus and failed to extend beyond the mid-139.00s for the time being.

Today’s renewed bid tone around the Japanese Yen has somewhat mitigated the recent violent up move from lows near 128.70 (July 6), quickly taking out post-‘Brexit’ lows around 133.20 at the same time.

GBP/JPY key levels

As the moment the cross is up 0.12% at 138.84 and a break above 139.48 (session high Jul.13) would expose 140.78 (38.2% Fibo of post-Brexit down move) and finally 150.95 (55-day sma). On the other hand, the next support lines up at 128.77 (2016 low Jul.6) ahead of 125.63 (monthly low Nov.2012) and then 124.68 (monthly low Oct.2012).