GBP/JPY fades a spike to 127.35 as Yen regains poise

The cross in the GBP/JPY stalled its renewed uptick and turned back towards 127 handle, as the Japanese yen appears to have recovered some ground over the last hour.

GBP/JPY hovers around 5 & 10-DMA confluence

Currently, GBP/JPY trades +0.07% higher at 127.12 levels, easing-off session highs previously posted at 127.36. The GBP/JPY cross continues its bearish consolidation phase, although reverses a spike to daily highs, as the Japanese yen sees some fresh buying on the latest US election poll results.

The latest Bloomberg Politics polls show Trump taking a lead over Clinton in Florida, with 45% voters in favor of Trump and 43% for Clinton. While reports of the BOJ said t o be moving away from QE purchase target references, also buoyed the sentiment around the pound.

However, the pair manages to hold above 127 handle as the cable remains well bid above 1.22 barrier amid resumption of USD broad USD selling. Attention now turns towards the UK prelim GDP figures, Japan’s CPI and US GDP report due on the cards later this week.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 127.36 (daily high), above which 127.77 (Oct 21 high) could be tested. On the flip side, support is seen at 126.40 (Oct 18 low) that at 126.06 (Oct 21 low).