GBP/JPY peeps above 135.00

A moderate risk-on type of a move has pushed the GBP/JPY cross above 135.00 handle; a level which the pair struggled to take out in the last few hours.

Trades positive on the day

The pair is trading moderately higher on the day around 135.30 levels. It was stuck in an 80-pip range of 134.20-135.00 levels in Asia. A couple of early attempts at 135.00 failed, although that did not result in a fresh sell-off as the markets are having a breather after two-day losing streak.

The moderate risk-on could be chart driven as Sterling pairs are heavily oversold. The data docket is light in Europe, hence continuation of the risk-on is largely dependent on the action in the UK’s FTSE index. Later in the day, US GDP release could come into play.  

GBP/JPY Technical Levels

Acceptance 135.73 (hourly chart hurdle) would open doors for 136.00 levels. If breached, the cross could test supply around 137.07 (hourly 50-MA). On the other hand, a breakdown of immediate support at 134.28 (daily low) would expose 133.36 (yesterday’s low) and 133.00 levels.