GBP/JPY off-highs, flirts with hourly 100-SMA

The GBP/JPY cross extends its recovery mode for the second straight session, now defending gains above 131 handle amid broad based JPY retreat.

GBP/JPY finds good support near 130.55

Currently, GBP/JPY now trades 0.24% higher at 131.16, having posted fresh session highs at 131.31 in early Asia. The GBP/JPY cross currently consolidates strong gains witnessed this session and manages to hold above hourly 100-SMA at 131.00, largely on the back of a solid recovery staged by USD/JPY, with the JPY bulls taking a breather amid Japan official’s jawboning attempt.

While the upside seems capped on the back of a weaker GBP/USD, as markets take profits off the table before the release of the UK jobs report. Further, investors all eagerly await the FOMC minutes due later in the NA session, which will have major impact on the US dollar and eventually on the GPB and JPY.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 131.74 (10-DMA), above which 132.04 (daily R2) could be tested. On the flip side, support is seen at 130.53 (daily low) that at 129.19 (Aug 16 low).