GBP/JPY faces rejection just shy of 132 handle, UK GDP eyed

The GBP/JPY cross reversed almost half the rally triggered by an 80-pips freak spike in USD/JPY, now hovering around the mid-point of 131 handle.

GBP/JPY tracks USD/JPY price-action

Currently, GBP/JPY trades +0.35% higher at 131.44, having faced strong offers near 132 barrier. The GBP/JPY cross trims gains, although remains well bid, mainly driven by fresh selling in yen witnessed across the board amid intervention chatter. However, nothing concrete seen so far behind the spike in USD/JPY.

While muted trading activity around the cable fails to provide any help to the cross, as investors now await the UK current account and final GDP data for further impetus on the pound.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 131.95 (daily high), above which 132.22 (daily R2) could be tested. On the flip side, support is seen at 130.89 (5-DMA) that at 130.41 (Sept 28 low).