GBP/JPY trims losses and approaches 131.00

• GBP/JPY reversal has found support at 130.15 to bounce up towards previous lows at 130.70.
• The Pound remains biased lower on concerns about the UK economic outlook.

Pound’s reversal from highs above 133.00 earlier this week has extended to seven-week lows at 130.15, where the pair seems to have found support after reaching seven-week lows right above 130.00.

The pound dives on concerns about the UK economy

The pair has depreciated about 1.5% this week, weighed by investors concerns about the COVID-19 impact on UK economy and Brexit fears. Furthermore, the downbeat sentiment on the market has strengthened the safe-haven yen, adding negative pressure pon the pair.

The GBP/JPY is trimming losses after bouncing at 130.15, turning neutral on the day and struggling to return above previous lows at 130.70 yet, with the main technical indicators pointing lower.

GBP/JPY remains biased lower with the next target at 130.00

Near-term charts show the pair under pressure, while below previous May lows at 130.70, with immediate support at the 130.00 psychological level. Below here, the focus will be at 129.45 (March 22 high) and 128.55 (61.8 retracement of the March-April rally). On the upside, above May 13 low at 130.70, the pair might find resistance at 131.25 (May 12, 13 lows) and 131.95 (May 13 high).

GBP/JPY key levels to watch