GBP/JPY losing sight of 140 handle

The cross in the GBP/JPY turned lower once again, having failed to reclaim 140 handle on a second attempt as risk sentiment deteriorated after oil prices turned negative.

GBP/JPY back below 140 handle

Currently, GBP/JPY advances +0.30% to 139.53, reversing sharply from session highs reached at 140.13. The GBP/JPY cross ran through fresh offers near 139.85 region, mainly driven by fresh JPY buying as risk sentiment came under pressure amid retreat in the Asian equities and renewed weakness in the oil prices.

While on the GBP-side of the story, the cable also appears to be hit by deteriorating risk conditions, and therefore adds to the downward pressure on the cross.

Looking ahead, markets now turn their attention on the Fed and BOJ monetary policy outcome due later this week, while a plenty of economic releases are in store viz. the UK GDP, US durable goods orders etc., which will have significant impact on the cross.  

GBP/JPY Levels to consider 

The pair has an immediate resistance at 139.87 (5-DMA), above which 140.37 (daily R2) would be tested. On the flip side, support is seen at 138.38 (Jul 22 low) that at 140.46 (5-DMA).