GBP/JPY rebounds from 2-month lows, still unable to hold above 140.00

The pound today is looking stronger in the market after days of weakness. It is trimming some of the weekly losses. Against the yen, the recovery lost momentum during the American session after a reversal in equity prices in Wall Street. 

GBP/JPY bottomed during the Asian session at 139.27, the lowest level since June 15. From the lows, it bounced to the upside, boosted by a rally of the pound across the board. It peaked at 140.40 but now, is trading back under 140.00. 

On a weekly basis, the pair is still down, headed toward the fourth decline in a row and the lowest close since April. The move reflects concerns about Brexit and follows the last statement from the Bank of England. 

Technical levels 

To the upside, resistance level could be located at 140.05 (Aug 21 & 22 low), 140.40/45 (daily high) and 140.90. On the flip side, support might be seen at 139.80 (US session low), 139.40 (Aug 23 low) and 139.20/25 (daily low).