GBP/JPY tumbles to 142.00 after NFP, also affected by GBP

The pound is among the worst performers on Friday amid uncertainties about next week elections in the UK. GBP/JPY lost all weekly gains in a few hours and approached May lows. 

The pair reached earlier a 1-week high at 143.93 and then pulled back modestly. The retreat accelerated after the release of the US employment report that triggered a rally of the yen in the market, as US bonds yields tumbled to multi-month lows. GBP/JPY bottomed at 142.00, the lowest since Wednesday and it was trading at 142.45/50, down a hundred pips for the day. 

The slide was possible because of the weakness seen in the pound, that was among the few currencies with a limited rally against the US dollar after the NFP. 

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Technical outlook 

Today’s slide confirms the current bearish bias for the pair. Earlier today it moved momentarily above a downtrend originated at May highs, but the pound failed to hold and pulled back, adding more relevance to the line. A daily close under 142.00 would add more bearish pressure and would probably expose the next medium-term support locate around 140.50/60. 

On the upside, the pair needs to consolidate above 144.00 to break the mentioned downtrend line and remove the bearish momentum. The next key level is 144.80, the 20-day moving average, that has been a reliable indicator lately. If the price climbs and holds above, the pound could gain a support for a move toward 146.00.