GBP/JPY keeps session highs near 133.20

Pablo Piovano FXStreet

The offered tone around the Japanese currency has lifted GBP/JPY to daily tops in the 133.20 area today, following the BoJ meeting.

GBP/JPY stronger on JPY-selling

The cross has quickly climbed to 2-day tops above the 133.00 handle as market participants have perceived the BoJ meeting as dovish, sparking a wave of selling interest around the Japanese currency.

In fact, the BoJ left its benchmark rate unchanged, abandoning at the same time the ‘monetary base target’ and advocating for a control of the yield curve. The initial reaction in global markets has been a sell off in JPY and a sharp climb in Japanese stocks, although the extent of the move remains to be seen.

GBP/JPY key levels

As the moment the cross is gaining 0.76% at 133.12 and a break above 134.96 (55-day sma) would expose 135.08 (20-dat sma) and finally 136.19 (23.6% Fibo of post-Brexit down move). On the other hand, the initial support lines up at 129.19 (low Aug.16) followed by 128.77 (2016 low Jul.6) and then 118.70 (low Jun.1 2012).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bullish	Overbought	High
1H	Bullish	Overbought	High
4H	Bullish	Neutral	Low
1D	Bullish	Oversold	Shrinking
1W	Bullish	Oversold	Low
Updated Sep 21, 06:00 GMT

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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