GBP/JPY trying to defend 4-week old trading range support

The Japanese Yen extended gains across the board, with the GBP/JPY cross dropping to four-week old trading range support near mid-138.00s.

As a fresh wave of risk aversion sweeps global financial markets, the Japanese Yen continues to benefit on safe-haven demand. Adding to this, a softer tone around the British Pound further collaborated to the GBP/JPY pair's pull-back from weekly high levels touched in the aftermath of the latest UK CPI print. 

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Despite of the previous session's strong up-surge, the cross failed to break through four-week old trading range resistance near the 140.50-60 region and ended the day with only marginal gains below the key 140.00 psychological mark. 

It, however, remains to be seen it the cross could still break through the recent trading range or manages to bounce off the 138.50-45 important support area.

Technical levels to watch

On a sustained weakness below 138.50-45 support, the cross is likely to accelerate the towards the 138.00 handle before eventually dropping to 137.00 round figure mark, with some intermediate support near 137.60 area.

Alternatively, recovery from current support level, and a subsequent move beyond 139.00 round figure mark, seems to lift the cross towards 139.50 resistance before the making a fresh attempt towards reclaiming 140.00 mark and aiming towards 140.50-60 strong hurdle.