GBP/JPY drops sharply to 134.30 as Yen regains poise

A sudden buying-wave hit the Japanese yen over the last hour, knocking-off GBP/JPY sharply towards 134 handle.

GBP/JPY dragged by a sharp fall in USD/JPY

Currently, GBP/JPY now trades -0.27% lower at 134.35, hovering in close proximity to daily low struck at 134.28 last hour. The JPY bulls fought back control in late-Asia, allowing the Japanese yen to regain yesterday’s upbeat momentum against its British counterpart.

The cross came under fresh selling pressure over the last hour, largely on the back of a sharp drop in the USD/JPY pair, after the yen regained bids amid extension of losses in the Japanese stocks. The Nikkei 225 index dives -1.55% versus -0.85% seen previously.

Next of note for the cross remains the UK services PMI data ahead of the US economic releases due later in the NA session.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 135.06 (daily high), above which 135.62 (daily R1) would be tested. On the flip side, support is seen at 134 (round figure) that at 133.86 (Aug 2 low).