GBP/JPY breaks below 144.00, drops to 5-week lows

After making a pause on Monday, GBP/JPY resumed the downside on Tuesday. It broke below last week and July lows located near the 144.00 handle and fell to 143.16, the lowest since June 26. 

Bearish pressure intensifies 

GBP/JPY is now consolidating significantly below the 144.00 zone, reinforcing the bearish bias. It trades at 143.40, down 90 pips for the day. The pound appears to be looking for a new support. Below the 143.00 area, the next strong support is seen at 142.70/80 followed by an uptrend line at 141.80/90, that connects April and June lows. 

On the upside, a recovery above 144.00 could remove some of the downward momentum. Above the next key level is located at 145.40/50, a horizontal resistance area and also where the 20-day moving average is located.

GBP still affected by BoE 

The pound continues to be among the weakest currencies in the market, still affected by the latest Bank of England meeting. The central bank took a hawkish step back and weakened the pound. 

The yen remains resilient in the market, particularly with USD/JPY holding in a range between 111.000 and 109.80, the lowest since mid-June. A break of the lower bound of the range could add further strength to the Japanese currency across the board.