GBP/JPY: bulls having a go at key resistance 50 4hr sma 133.46

GBP/JPY has recovered from the lows post Brexit on the 24th June in a minor recovery from 126.62 to fresh highs of 133.45.

GBP/JPY had dropped heavily from 160.11 post the Brexit vote and sterling has been unable to shake off the bear's appetite for more downside given the uncertainties to that lay ahead for the UK economy. However, of not today, some of that uncertainty has been alleviated in respect to UK leadership with David Cameron's recent announcements and May stepping up to the challenge to lead the nation forward. Additional political uncertainty was put to rest in Japan over the weekend as well with Shinzo Abe declaring victory in the Japanese elections.

GBP/JPY levels

GBP/JPY has bounced from the 20 sma on the 4hr sticks at 130.88 ad has moved up to challenge the 50 133.46. This level comes in line with the lows of the initial Brexit fallout and bearish spike, so a break here would be significant targeting the 138 handle.