GBP/JPY snaps four-day winning streak on Kuroda

Bid tone around JPY strengthened following Kuroda’s comments, courtesy of which GBP/JPY cross snapped its four-day winning streak.

Hovers around 138.00

The pair clocked a low of 137.83 following Kuroda’s comments before recovering slightly to trade around 138.00 levels. The central bank chief tried to calm market nerves about central bank exhaustion, but did state there are limits to what bank can do with respect to debt monetization.

Overall demand for Yen should continue to drive the action in the cross ahead of the UK services PMI release.

GBP/JPY Technical Levels

Break above Friday’s high of 138.83 would open doors for a psychological figure of 140.00, above which the cross could target 140.64 (38.2% of 160.12-128.60). On the other hand, a breakdown of support at 137.00 would shift risk in favor of a drop to 136.04 (23.6% of 160.12-128.60). Further losses could run into support at 134.98 (50-DMA).