GBP/JPY soars through 137.00 handle post UK PMI

The British Pound surged across the board, with the GBP/JPY cross soaring through 137.00 handle to currently trade at the highest level since July 29.

The UK manufacturing PMI rebounded sharply in August and jumped to 53.3 from July's 48.3 (revised from 48.2 reported originally). The reading marked its highest level since last October and helped sterling to build on recent gains.

Moreover, increasing expectations of additional monetary easing announcement by BoJ provided an additional boost, helping the cross to extend its break-out momentum above 50-day SMA and break through a short-term ascending trend-channel formation on 4-hourly chart. 

Going forward, the crucial US monthly jobs report (NFP) would derive the safe-haven demand for the Japanese Yen and eventually trigger next leg of move for the GBP/JPY cross. 

Technical levels to watch

Further bullish momentum above 137.30 immediate resistance is likely to lift the cross immediately towards 137.85 resistance before clearing 138.00 and 139.00 handles to aim for testing July 29 highs resistance at 139.30 level in the near-term.

Meanwhile on the downside, 137.00 round figure mark now seems to act as immediate support. Weakness below 137.00 handle should now be short-lived and is likely to be bought into around the ascending trend-channel resistance break-point, turned strong support, near 136.00 round figure mark.