GBP/JPY extends weakness into Asia, back below 127

The cross in the GBP/JPY extends weakness for the second straight session on Monday, mainly driven by steep losses in the cable, which outweighs a moderately higher USD/JPY.

GBP/JPY: 127.00 – Key resistance

Currently, GBP/JPY drops -0.31% to 126.73, having previously posted daily lows at 126.62. The GBP/JPY cross remains under heavy selling pressure this session, largely as the GBP/USD pair suffers size-able losses amid broad based US dollar strength.

However, the downside appears restricted as upbeat momentum behind USD/JPY offers some respite to the bulls. Going forward, BOE Chief Carney’s speech and UK prelim GDP will be monitored alongside the durable goods and advance GDP numbers from the US.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 127.03/04 (5 & 10-DMA), above which 127.77 (Oct 21 high) could be tested. On the flip side, support is seen at 126.40 (Oct 18 low) that at 126.06 (Oct 21 low).