GBP/JPY extend UK wages-led retracement further below 140.00 mark

The GBP/JPY cross extended mixed UK jobs data-led retracement from session peak and dropped further below the key 140.00 handle.

Currently trading around 139.70 level, the cross lost its upside momentum and once again failed to sustain / build on to its momentum beyond mid-140.00s in wake of disappointing wage growth data from the UK. The monthly UK employment report revealed average earnings for three-months to Jan rose at a yearly pace of 2.2%, down from previously recorded 2.6% and 2.4% growth expected. 

Other details of the report - claimant count change and unemployment rate, printed better-than expected readings, disappointing wage data provides a headroom for the BoE to stick to its dovish bias on Thursday. 

Meanwhile, a cautious investors' sentiment, ahead of major central banks monetary policy decisions - the FOMC and BoJ, is further supporting the Japanese Yen's safe-haven appeal and collaborating to the pair's retracement from two-week highs. 

Technical levels to watch

Immediate support is seen near 139.40-30 region, below which the cross is likely to aim towards the 139.00 handle before eventually dropping to dropping to the very important 200-day SMA support near 137.90-85 region, with some intermediate support near mid-138.00s.

On the upside, renewed strength above 140.00 mark, leading to a subsequent momentum above 140.30-35 horizontal resistance, now seems to pave way for extension of the pair's near-term upward trajectory, beyond 140.70 resistance, towards reclaiming the 141.00 handle.