GBP/JPY swings back above 135 handle

The GBP/JPY cross extends its choppiness into Europe, having failed once again to take out a strong resistance placed ahead of 135.20 region.

GBP/JPY tracks USD/JPY rebound

Currently, GBP/JPY now trades 0.13% higher at 135.09, struggling hard to extend beyond 135.23 levels. The cross in the GBP/JPY staged a rebound from session lows in sync with the USD/JPY pair, after BOJ deputy governor’s comments on the monetary policy triggered a fresh rally in the yen across the board.

However, the rate failed to sustain at higher levels amid fresh selling seen in the cable, as investors turn cautious and take profits off the table ahead of the BOE monetary policy decision and inflation report release.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 136 (round figure), above which 136.44 (10-DMA) would be tested. On the flip side, support is seen at 134.51 (daily low) that at 133.86 (Aug 2 low).