GBP/JPY keeps session highs near 133.20

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).