GBP/JPY retreats, still holds above 130.00

GBP/JPY is falling modestly on Wednesday after posting strong gains on Tuesday, when it traded during half of the day below 130.00, near July lows. Today it peaked at 131.80, the strongest level in five days but then turned to the downside erasing all gains.

The pair is trading at the lowest level of the session at 130.30, 150 pips below daily highs as traders await the release of the FOMC minutes.

The better-than-expected UK employment report released earlier did not give a strong boost to the pound in the market as it failed to attract follow-up buying interest.

Technical levels to watch

To the downside, support levels could be located at 130.30 (daily low), 130.00 (psychological), 129.90 (Aug 15 low) and 129.20 (Aug 16 low). On the opposite direction, resistance might be seen at 131.15 (American session high), 131.75/80 (daily high) and 132.50 (Aug 11 & 12 high).