GBP/JPY surges to 132.00 on prospects of fresh stimulus in Japan

After bottoming out around 130.00 psychological mark, confirmation of introducing fresh stimulus measures by Japan's PM Abe has now boosted the GBP/JPY pair back above 132.00 mark. 

Adding to the prospects of additional stimulus in Japan, global risk-on sentiment triggered a broad based selling pressure around the Japanese Yen. Moreover, the British Pound also seems to gain traction after exhausting the post-Brexit sell-off and is further assisting recovery in the GBP/JPY cross. 

In absence of any major economic releases on Monday, the cross might continue to gain traction on the back of risk-on sentiment surrounding global equity markets ahead of this week's key event risk, BOE monetary policy decision on Thursday. 

Technical levels to watch

On a sustained move above 132.00 level, and a follow through buying interest beyond 132.50 horizontal resistance, now seems to assist the pair to continue with its recovery trend towards 134.50-70 support turned resistance before heading towards its next major resistance near 138.00 handle. On the flip side, 131.00 round figure mark now seems to act as immediate support, below which the pair could be headed back towards 130.00 psychological mark support.