A weak pound across the board pushed the GBP/JPY to test September lows. So far it has been able to hold on top, but still remain under pressure.
Difficulties above 132.00
After starting the day above 132.00 the pair turned to the downside and extended the slide during the European session. It bottomed at 130.44. From there it rebounded and it was trading at 130.85/90, 200 pips below the level it had a week ago.
There was no particular catalyst for the decline of the pound in the market, while the yen is showing mix results.
Technical levels to watch
To the downside, support levels could be located at 130.40/45 (daily low), 130.00 (psychological) and 129.15/20 (Aug lows). On the opposite direction, resistance might be seen at 131.40 (intraday level), 132.25/30 (daily high) and 133.25 (Sep 23 high).
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