After the frantic short-covering rally in Cable and the sterling crosses this morning, we are seeing some retracement in the short-term trends.

GBP/JPY, in particular, is coming under some renewed pressure at the moment after a breath-taking rally early in the session. The move through the 144.00/50 area sent leveraged players scrambling for the exits and took prices as high as 147.50. We have eased now to 146.75 as USD/JPY ran into sellers in the 9080 region and the rumored Mid East bid for the UK’s Sainsbury’s has been denied.

146.20/25 is modest support on pullbacks in GBP/JPY at the moment with not much more until all the way down at 145.10, the 38.2% retracement of the 141.15/147.65 rally.