GBP/JPY peeps above 137 on threat of BOJ intervention

Threat of a possible FX market intervention by Bank of Japan (BOJ) is keeping the Yen weak in Asia and that has helped GBP/JPY cross have a look above 137.00 levels despite heightened political uncertainty in Europe.

Trades at 40-month low

Despite the recovery from Friday’s low of 133.21 and a move above 137.00 levels in Asia, the pair is still at the lowest since Feb 2013. Markets fear BOJ could make a move in order to stall the rise in Yen, hence the GBP/JPY cross jumped from 136.06 to a high of 137.82.

At the time of writing, the cross was trading at 137.10. Gains are hard to come as Sterling is once again losing ground on increased uncertainty following Brexit.

GBP/JPY Technical Levels

A cut through Asian session low of 136.06 would once again expose 133.49 (Mar 2012 high). A violation would open doors for 130.00 levels. On the higher side, 140.02 (Apr 2011 high) is a resistance, which if breached would shift risk in favor of a rise to 141.90 (hourly chart resistance). A break higher could yield 144.08 (hourly resistance).