GBP/JPY recedes below 142.00, despite JP stimulus talks

The cross in the GBP/JPY extends its rebound into a second day this Thursday, mainly driven by extended weakness in the yen against the greenback in wake of re-emergence of the Japanese stimulus talks in markets.

GBP/JPY back below 142 handle

Currently, GBP/JPY advances +0.50% to 141.78, reversing sharply from fresh four-day highs reached at 142.23 earlier on the day. The GBP/JPY cross trims gains, although remains strongly bid as the yen remains pressured across the board, after headlines hit the wires that the Japanese government  is mulling over $ 200bln stimulus package, which could be expanded will before the Aug 2 cabinet approval.

While on the GBP-side of the story, the cable reversed a spike to 1.3276 and now consolidates at the lower-end of today’s range. The retreat in the GBP/USD pair is partly responsible for the latest move lower in the cross.  

Attention now turns towards a fresh batch of US macro updates due later in the NA session for further cues on the yen cross.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 142.23/34 (daily high/ R1), above which 143 (round number) would be tested. On the flip side, support is seen at 141.09 (daily low) that at 140.46 (5-DMA).