GBP/JPY snaps two-day winning streak

GBP/JPY cross snapped two-day wimnning streak to trade around 131.60 levels largely on the back of Yen buying.

Rejected at 132.23

The cross jumped to a high of 132.23 as an upbeat US IMS non-manufacturing figure saw Yen drop against the US dollar. Meanwhile, the British Pound remained relatively resilient, after having dropped to 31-year low in early Europe yesterday.

On a weekly timegrame, the cross is trading with moderate gains. However, the gains could be extended or wiped out depending on the quality of the US non-fam payrolls report and more importantly wage growth data.

GBP/JPY Technical Levels

The immediate resistance is seen at 132.00 (zero level) above which the cross could target 132.44 (Sep 29 high). Further gains could run into 50-DMA resistance of 133.12. On the other hand, a breakdown of support at 131.24 (5-DMA) would shift risk in favor of a drop to 130.99 (10-DMA). A violation there could yield 130.07 (Oct 3 low).