GBP/JPY consolidates the downside below 133.30

The GBP/JPY cross moved-off two-week lows and regained 133 handle in the Asian trades, with the recovery mainly driven by an upward correction in the cable after Friday’s massive sell-off.

GBP/JPY looks to regain 134 handle?

Currently, GBP/JPY now gains +0.13% to 133.16, having failed to take-on the recovery above 133.30 levels so far this session. The GBP/JPY cross keeps the bid tone intact, although trims gains as the USD/JPY pair remains heavy amid broad based US dollar weakness.

However, the cross finds support from the corrective rally in the GBP/USD pair after the spot slumped more-than 250-pips on Friday, following UK finance minister Hammond’s comments.

Attention now turns towards the BOJ and Fed monetary policy decisions scheduled for announcement later this week, which are likely to have major impact across the fx board.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 134 (5-DMA), above which 134.41 (50-DMA) could be tested. On the flip side, support is seen at 132.33 (Aug 26 low) that at 132 (round number).