GBP/JPY breaks below 140.00, session lows

GBP/JPY met increasing selling interest following poor results from UK Retail Sales, dropping to fresh lows in the 139.60 area.

GBP/JPY retreats from 142.30

After climbing as high as the vicinity of 142.30 during overnight trade, the cross has quickly faded that spike and retreated to sub-140.00 levels in response to the poor results from UK’s retail sales.

In fact, headline sales have contracted 0.9% vs. a forecasted drop of 0.6%, while Core sales (excluding the Fuel component) have also dropped 0.9% during last month.

Adding to the downside, BoJ’s H.Kuroda has ruled out the likeliness of ‘helicopter money’, giving extra legs to the demand for the Japanese safe haven.

GBP/JPY key levels

As the moment the cross is losing 1.24% at 139.24 and a break below 136.76 (20-day sma) would aim for 136.19 (50% Fibo of post-Brexit down move) and then 128.77 (2016 low Jul.6). On the other hand, the initial hurdle is located at 142.37 (high Jul.21) followed by 143.25 (high Jul.15) and finally 144.50 (50% Fibo of post-Brexit down move).