GBP/JPY buoyant above 140.00, PMI eyed

GBP/JPY is recovering part of Thursday’s drop and it has now returned to levels above the 140.00 handle.

GBP/JPY up ahead of UK’s PMI

The buying pressure around the Japanese safe haven seems somewhat mitigated today, allowing the cross to return to green figures beyond the critical 140.00 limestone.

GBP will take centre stage later in the session, as advanced Manufacturing and Services PMIs are expected to have slipped back below the key 50 level for the current month as a direct consequence of the recent ‘Brexit’ vote.

GBP/JPY key levels

As the moment the cross is advancing 0.14% at 140.28 and a break above 143.25 (high Jul.15) would aim for 144.50 (50% Fibo of post-Brexit down move) and finally 148.93 (55-day sma). On the flip side, the immediate support lines up at 136.68 (20-day sma) followed by 136.19 (50% Fibo of post-Brexit down move) and then 128.77 (2016 low Jul.6).