GBP/JPY eases from highs, returns to 132.20

The bid tone around the Sterling is now losing momentum, prompting GBP/JPY to leave daily highs in the 132.50 are and slip back to 132.20.

GBP/JPY remains under pressure

The cross is extending its weekly consolidative pattern today, trading in a tight range with gains so far capped just above the 134.00 handle, Monday’s peaks.

The absence of relevant drivers, steady Japanese Yen and choppy/bearish price action around the British pound left the pair navigating the area of  3-week lows, closer to YTD troughs around 128.80 seen in early July.

GBP/JPY key levels

As the moment the cross is advancing 0.03% at 132.14 and a break above 136.10 (20-day sma) would expose 143.25 (high Jul.15) and finally 144.50 (50% Fibo of post-Brexit down move). On the other hand, the immediate support aligns at 130.00 (psychological level) and then 128.77 (2016 low Jul.6).