GBP/JPY: Upside gathers pace, regains 136 and beyond

The bulls appear to regain momentum last minutes, further fuelling the recovery in the GBP/JPY towards 10-DMA located at 136.43.

GBP/JPY supported at 135.75

Currently, GBP/JPY now jumps +0.66% to 136.24, finally staging a decisive break above 136 handle. The GBP/JPY cross accelerates to the upside as markets witnessed a renewed bout of selling interest behind the yen, after headlines hit the wires that BOJ members are open to consider more easing next week, with some BOJ member still favoring JGBs in any new stimulus measures.

While, on the UK- side, the cable stalls rebound just ahead of 1.32 handle and treads water ahead of the UK jobs report, providing little impetus to the latest leg higher in the cross.

Focus remains on the BOJ-related news flow, as investors await the UK employment data for further momentum.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 136.43 (10-DMA), above which 136.96 (daily R2) could be tested. On the flip side, support is seen at 135.87 (5-DMA) that at 135.45 (20-DMA).