GBP/JPY registers losses as GBP selling gathers pace

Pound selling has gathered pace in Asia, pushing the GBP/JPY cross to a four-day low of 114.12.

The currency pair spent last one week romancing the 145.00 handle, but failed to close above the psychological level.

Thursday’s Doji and a bearish follow through

Thursday’s Doji candle signalled the recovery from the May 18 low of 143.34 has run out of steam, however, traders usually wait for a bearish follow through (bearish reversal confirmation).

The decline seen in Asia could be read as a bearish follow through and may bring in fresh offers in European and North American session.

The decline in Pound could be attributed to Thursday’s weak UK GDP print. Moreover, the uptick in the Japanese CPI reported today has not had any major impact on the Yen pairs.

GBP/JPY Technical Levels

The cross was last seen trading around 144.28 levels. A breakdown of support at 143.76 (May 23 low) could yield a pullback to 143.33 (38.2% Fib R of Apr low - May high) and 142.04 (Feb 22 high). On the other hand, a break above 144.76 would open doors for 145.16 (23.6% Fib R of Apr low - May high) and 145.43 (previous day’s high).