GBP/JPY recovery fizzles, retreats back below 141.00

The GBP/JPY pair's swift recovery of over 1000-pips from its lowest level in over 5 ½ years, got sold into around 144.00 level and the cross has now dropped back to 140.00 psychological mark.

Earlier during the day, the British Pound suffered a sharp knock on the back of a win for campaign supporting to leave the EU, while Yen surged on global risk-aversion. The cross took a u-turn from 160.00 handle and plunged to the vicinity of 133.00 level. 

The pair, however, managed to bounce off lows after central banks from both the major economies turned-up and issued statements to calm turmoil in financial markets across the globe. Moreover, the pair also took support from PM Cameron's assurance that the UK economy is fundamentally strong.

Moving ahead, developments surrounding the unexpected outcome of the UK-EU referendum would continue to drive investor sentiment surrounding the British Pound.

Levels to watch

Bears would be looking for a sustained trade back below 140.00 handle for extension of the downfall towards 135.00 level. Meanwhile, a break above 144.00 (recovery high) might pick-up pace towards 147.00 resistance.