GBP/JPY hit 5-week low as the battle for 10 Downing Street heats up

The battle for 10 Downing Street is getting intense each passing day, with PM May’s Conservative party losing ground in the fresh polls.

GBP/JPY is down 0.60% at 142.00 levels in Asia and looks set to extend the losses to 141.85 (50% Fib R of Apr low - May high). The latest UK Times poll showed that May's Conservatives lead shrunk to only 6 points.

The markets do not seem to appreciate the fact that May still looks set to win the elections. Moreover, PM May called snap elections (to be held on June 8) back in April, hoping that a strong mandate will allow the Government to ‘make a success of Brexit’.

However, the recent polls show May’s Conservative party may end up with a narrow victory and that may not change the status quo.

GBP/JPY Technical Levels

A break above 143.33 (38.2% Fib R of Apr low - May high) would open up upside towards 144.13 (May 22 low) and 144.51 (May 24 low).

On the downside, breach of support at 141.85 (50% Fib R of Apr low - May high) could yield a sell-off to 140.60 (Mar 15 high) and 140.00 (zero levels).