GBP/JPY hits a fresh 2-week low at 134.50

The Japanese Yen maintained its bid tone, with the GBP/JPY cross trading dropping to 2-week low level to currently trade around mid-134.00s.

The prevailing uncertainty around BOJ's next policy move continues to support the Japanese currency. Meanwhile, the British Pound came under renewed selling pressure after BOE left doors open for a further rate-cut in November, eventually exerting selling pressure around the GBP/JPY cross. 

With an empty UK economic calendar, investors will keep a close watch on news coming out of the special EU leaders meeting called to discuss consequences of the historic Brexit referendum. However, next week's BOJ meeting would remain the key determinant of the pair's near-term trajectory.

Nevertheless, the cross is still headed for second consecutive week of declines. 

Technical levels to watch

On a sustained weakness below 134.50 area, the cross is likely to continue drifting lower towards its next major support near 133.55-50 region with 134.00 round figure mark acting as intermediate support.

On the flip side, any recovery attempt might now confront immediate resistance at 135.00 psychological mark. Even if the cross manages to clear this immediate hurdle, further up-move might now be capped at 135.60-70 strong horizontal resistance.