GBP/JPY: recovery losses strength above 143.00

GBP/JPY is consolidating modest gains on Monday, recovering after Friday’s decline. The pair bottomed last week at 142.12, the lowest level in a month and today it traded momentary above 143.00, before the recovery lost strength. 

Today it reached a daily high at 143.07, and currently is hovering around 142.80/90, near last week lows and below the key 143.50 area. 

Short-term trend still point lower

Despite today’s recovery, the pound continues under pressure with the pair moving below a downward trend line that currently stands at 144.50; a consolidation above that dynamic resistance, would add support for a stronger recovery and could remove the bearish bias. 

Last week the pound suffered the fourth weekly decline in a row against the yen, as it continues to correct lower from 148.10 (May 5 high), the highest since mid-December. 

To the downside, a slide below 142.50 would add more pressure to the pair, exposing last week lows and the 142.00 area. Below that area, the next medium-term support is seen around 140.50/60.