GBP/JPY firmer, returns below 133.00

The Japanese yen continues to depreciate vs. its G10 peers on Monday, helping GBP/JPY to print daily peaks above the 133.00 handle.

GBP/JPY supported near 130.00

The cross has regained over three cents since overnight lows in the 130.00 neighbourhood after increasing selling pressure hit the safe haven JPY in response to further stimulus plans by the government, likely to be announced tomorrow.

In addition, GBP remains under pressure following the decision by A.Leadsom to withdraw from the race for UK’s Conservative Party leadership, paving the way for candidate Theresa May to become the next PM.

GBP/JPY key levels

As the moment the cross is up 1.99% at 132.70 and a break above 133.18 (post-Brexit low Jun.24) would open the door to 139.05 (high Jun.29) and finally 140.63 (20-day sma). On the other hand, the next support lines up at 128.80 (2016 low Jul.6) ahead of 125.63 (monthly low Nov.2012) and then 124.68 (monthly low Oct.2012).