GBP/JPY faces rejection just shy of 132 handle, UK GDP eyed

Dhwani Mehta FXStreet

The GBP/JPY cross reversed almost half the rally triggered by an 80-pips freak spike in USD/JPY, now hovering around the mid-point of 131 handle.

GBP/JPY tracks USD/JPY price-action

Currently, GBP/JPY trades +0.35% higher at 131.44, having faced strong offers near 132 barrier. The GBP/JPY cross trims gains, although remains well bid, mainly driven by fresh selling in yen witnessed across the board amid intervention chatter. However, nothing concrete seen so far behind the spike in USD/JPY.

While muted trading activity around the cable fails to provide any help to the cross, as investors now await the UK current account and final GDP data for further impetus on the pound.

GBP/JPY Levels to consider

The pair has an immediate resistance at 131.95 (daily high), above which 132.22 (daily R2) could be tested. On the flip side, support is seen at 130.89 (5-DMA) that at 130.41 (Sept 28 low).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	Low
1H	Bearish	Neutral	Shrinking
4H	Strongly Bearish	Oversold	High
1D	Bearish	Neutral	High
1W	Bullish	Neutral	Low
Updated Sep 29, 03:30 GMT

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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