GBP/JPY off highs, back below 133.00

The GBP/JPY cross stalled its recovery near 133.10 region, and from there drifted lower below 133 handle amid widespread risk-aversion.

GBP/JPY trades below all major DMAs

Currently, GBP/JPY trades modestly flat around 132.85, retreating from session highs reached at 133.12. The GBP/JPY cross defends the bids in wake of persistent risk-off trade, as markets remain unsure of BOJ’s next move ahead of its policy decision due tomorrow.

While on the GBP-side of the story, the cable failed to take-out 1.3050 barrier, however, trades marginally higher, lending some support to the cross. Focus is likely to remain on the monetary policy decisions by the BOJ and FOMC due tomorrow, with BOJ outcome to outrightly overshadow Fed’s.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 133.40 (5-DMA), above which 134.27 (50-DMA) could be tested. On the flip side, support is seen at 132.33 (Aug 26 low) that at 132 (round number).