GBP/JPY attempts tepid-bounce towards 135.50, will it sustain?

The GBP/JPY cross is seen making minor-recovery attempting back towards 135.50 levels, with the bears having taken a breather over the last hour.

GBP/JPY finds support just shy of 20-DMA at 135.25

Currently, GBP/JPY now trades -0.34% lower at 135.37, reversing a dip to 135.19 lows. The GBP/JPY cross trims losses, although remains deep in the red, largely on the back of a steep drop in the USD/JPY pair, as the Asian traders reacted negatively to more dovish-than expected comments from Fed Governor Brainard delivered last US session.

Moreover, on the UK- side, the cable remains under mild pressure on the back of renewed weakness in oil prices as well as behind the Asian stocks, which weigh on the risk currency GBP.  Next of note for the cross remains the Chinese data dump ahead of the UK CPI data due for release later on Tuesday.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 135.95 (5-DMA), above which 136.48 (daily R1) could be tested. On the flip side, support is seen at 135.01 (50-DMA) that at 134.53 (roAug 31 low).