GBP/JPY drops to 134.50 ahead of UK PMI

GBP/JPY is extending its weekly sideline theme, now navigating the mid-134.00s ahead of key UK’s PMI.

GBP/JPY keeps the negative streak

The cross is losing ground for the fifth session in a row so far today, shedding nearly six cents since last week’s tops above the key barrier at 140.00 the figure and keeping the trade in the lower bound of the range.

A cautious tone around GBP prompted traders to give away part of recent gains ahead of the critical BoE meeting due tomorrow, while uncertainty still lingers following the recently announced measures by the Japanese Government, all undermining any bullish attempt in the cross.

GBP/JPY key levels

As the moment the cross is down 0.07% at 134.66 and a breakdown of 133.86 (low Aug.2) would expose 132.92 (low Jul.12) and then 128.77 (2016 low Jul.6). On the flip side, the initial up barrier is located at 143.25 (high Jul.15) would aim for 144.50 (50% Fibo of post-Brexit down move) and finally 145.88 (55-day sma).