GBP/JPY regains 141 and beyond on BOJ operations

GBP/JPY reversed a brief dip below 141 handle and now extends the rebound above the mid-point of the last, mainly driven by renewed yen weakness across the board. 

Focus shifts to NFP

The yen witnessed two-way trades so far this session, initially rallying higher on the bids versus its American dollar after the BOJ bought fewer bonds at today’s market operations.

Over the last hours, the USD/JPY pair regained lost footing and rebounded sharply after the Japanese currency reversed entire gains and slipped rapidly on the BOJ headlines that cited that the bank offers to buy 5-10yr JGBs in unlimited amounts.

Overall, the cross track the USD/JPY price action amid BOJ operations, while cable remains muted post neutral BOE, offering little impetus to the prices. Focus now shifts towards the US employment data due later in the NA session. Meanwhile, the UK services PMI data could provide fresh momentum to the pound.

GBP/JPY Technical Levels

A break above 141.87 (daily pivot) would open the doors to 142.03 (5-DMA) and then to 142.89 (10-DMA). On the lower side, a breach of 140.86 (daily low) could yield a sell-off to 140.12 (daily S1). A violation there would expose strong support at 139.08 (Jan 18 low).