GBP/JPY better offered leading into the UK elections?

GBP/JPY has been better offered since May 9th and the supply continued in the open of Asia today.

Sterling crosses were suffering the latest atrocities in London's most recent terror attack on civilians enjoying a Saturday night out in the bars and restaurants around London Bridge and Borough Market; more on that tragic event that claimed the lives of seven and injured/hospitalised many more here: London Bridge terror attack: safe havens and ongoing terrorism

The main focus for markets, at least for this week, are the UK elections; The pound will be keenly traded on the results. The latest polls continue to show a narrowing in the margin of the Conservatives lead and the risk for the pound is the potential of a hung parliament. Safe havens, such as the yen, can continue to garner strength around the event which could weigh on the cross significantly this week. 

USD/JPY levels

In respect to USD/JPY, support is expected in front of 110.00, and a break could see 109.40-109.60, suggested analysts at Brown Brothers Harriman, adding, "However if US yields do not find better traction, a return to the JPY108 area seen in mid-April is possible."   

GBP/JPY levels

GBP/JPY is supported at the midpoint fo the 141 handle on a break of 141.80. Below 141.00 lies 140.20 and 20th April gap. Feb-April bearish channel was supported at 135.59. 134.90 on the wide is next key support area. To the upside, 142.20, 142.80 and 143.70 are near term resistances while a break to 145.30 puts the cross firmly back into a bullish position for a test of 16th May highs at 146.09.