GBP/JPY extends the rebound above 138.00

After dropping to session lows in near 137.90, GBP/JPY is now looking to regain the 138.30 area.

GBP/JPY lower on JPY buying

The cross has gathered further downside pressure in response to a solid pick up in the demand for the safe haven JPY during overnight trade, coming doen from daily tops in the 139.20 region.

Nothing worth mentioning data wise in the UK docket, whereas the BoJ meeting tomorrow will take centre stage amidst increasing speculation on the likeliness of additional easing measures.

GBP/JPY key levels

As the moment the cross is retreating 0.85% at 138.19 and a breach of 136.94 (20-day sma) would open the door to 136.19 (50% Fibo of post-Brexit down move) and then 128.77 (2016 low Jul.6). On the flip side, the next hurdle lines up at 143.25 (high Jul.15) followed by 144.50 (50% Fibo of post-Brexit down move) and finally 147.56 (55-day sma).