GBP/JPY firmer, looking to retake 136.00

GBP/JPY continues to recover part of Friday’s sharp pullback, navigating the 135.70 area after climbing as high as 136.30 during overnight trade.

GBP/JPY focus on PMI, BoJ

The cross is now looking to extend the rebound from Friday’s 2-week troughs in the 134.80 area as the buying pressure around the Japanese safe haven seems to have eased somewhat at the beginning of the week.

Anyway, GBP/JPY is poised to remain under pressure later in the week in light of the imminent announcement of the stimulus package by Abe’s government and the critical BoE meeting, where markets continue to price in looser monetary conditions.

GBP/JPY key levels

As the moment the cross is advancing 0.58% at 135.68 and a breakout of 143.25 (high Jul.15) would aim for 144.50 (50% Fibo of post-Brexit down move) and finally 147.56 (55-day sma). On the other hand, the immediate support aligns at 134.84 (low Jul.29) ahead of 132.92 (low Jul.12) and then 128.77 (2016 low Jul.6).