GBP/JPY trims losses, hovers around 140.00

Recovery on oil prices helped soften the bid tone around the Yen and thus open doors for a minor pull back in the GBP/JPY pair.

The cross was last seen trading around 140.05 levels after having clocked a low of 139.35 levels earlier today.

Oil prices dropped earlier today on fears OPEC may struggle to unite members after two years of depressed oil prices. This resulted in risk aversion and a rise in demand for the Yen.

Consequently, the bird fell to 139.35 before recovering to 140.05 on the back of a recovery in oil prices. Oil benchmarks were last seen trading moderately higher on the day.

GBP/JPY Technical Levels

A break above 140.16 (5-DMA) would open doors for 141.01 (session high) above which the cross could target 141.76 (Friday’s high). On the other hand, a breakdown of support at 139.68 (Thursday’s low) could yield a test of 139.35 (session lows) and 139.00 (zero figure).