GBP/JPY stalls 9-day winning streak, flirts with 136.00

The cross in the GBP/JPY moved-off two-month peaks and now flirts with 136 handle, correcting heavy gains seen over the last nine trading sessions.

GBP/JPY fades a spike to 136.21

Currently, GBP/JPY trades almost unchanged at 136 levels, having met fresh supply near 136.20 region. The GBP/JPY cross fails to sustain at higher levels and turns lower once again, as the recovery in the cable loses momentum, as markets continue to weigh weaker UK CPI report and BOE Carney’s sluggish outlook on the price pressures.

On the JPY-side of the story, a pulls back in the JGB yields triggered a fresh selling wave in the yen, which keeps the sentiment around GBP/JPY buoyed somewhat. All eyes now remain on the US dataflow, in order to gauge further signs of strength in the US economy, which will have major impact on the USD moves going forward.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 136.21 (daily high), above which 136.57 (2-month tops) could be tested. On the flip side, support is seen at 135.59 (daily pivot) that at 135.27 (5-DMA).