GBP/JPY retreats over 100-pips from session peak

The GBP/JPY cross once again failed to sustained its momentum above 141.00 handle and has now retreated nearly 100-pips from session peak.

Currently trading around mid-140.00s, a fresh bout of selling pressure around the British Pound has been a key contributor for the pair's retracement in the past hour of trading. However, an offered tone around the Japanese Yen, amid prevalent risk-on mood led by growing optimism over OPEC-deal on cutting output, seems to have limited further downslide for the time being. 

Earlier on Wednesday, the release of BOE's latest bank stress test results alongside the release of Financial Stability Report and subsequent press conference address by BOE Governor Mark Carney did provide an initial boost to the cross. The up-move, however, ran through fresh offers closer to a 4-month high touched last week. 

Looking ahead, broader market sentiment would continue to be driven by OPEC meeting related news-flow, which would derive safe-haven demand for the Japanese Yen and eventually provide some impetus for the GBP/JPY cross.

Technical levels to watch

A follow through weakness back below 140.00 psychological mark support now seems to drag the cross towards 139.50 intermediate support before eventually dropping to 139.00 strong horizontal support. On the upside, sustained move above 141.00 handle, leading to a bullish momentum through session peak resistance near 141.50 level, now seems to open room for further near-term appreciating move for the cross initially towards 141.75 (Nov. 25 high) and eventually towards 142.40 (July 21 high).