GBP/JPY hit by fresh US-China trade war concerns

• Risk hit in Asia as US issued new trade threats.
• GBP/JPY risks falling below 145.00, having faced rejection at falling trendline on Friday.

GBP/JPY is on the defensive and risks falling below 145.00 on escalating US-China trade issues.

The reports hit the wires earlier today that Trump administration is planning to block Chinese companies from investing in US technology companies. These measures, if announced, may spur more retaliation from China and could lead to a long drawn out trade war.

Consequently, the S&P 500 futures are down close to 0.5 percent and the funding currency JPY is solidly bid.

The GBP/JPY risks falling below 145.00 in a convincing manner as the European desks may put a strong bid under JPY on signs of risk aversion.

GBP/JPY Technical Levels

The currency pair ran into offers around the key falling trendline (drawn from April 18 high and April 26 high) on Friday.

Resistance: 145.92 (session high), 146.65 (Friday's high), 147.06 (May 4 low).

Support: 144.99 (March low), 144.39 (June 19 low), 143.19 (May 29 low).