GBP/JPY prints fresh 2-month highs near 137.30

The bid tone behind the GBP/JPY cross keeps growing bigger this Friday, as the yen extends its decline across the board on the back of Yellen-led resurgence of USD buying.

GBP/JPY regains 137 handle

Currently, GBP/JPY trades +0.33% higher at 137.20, testing two-month highs reached at 137.27 some minutes ago. The GBP/JPY cross stalled its upbeat momentum as the bulls gather pace for the next push higher.

The renewed rally in the spot was mainly driven by ongoing strength behind USD/JPY amid increased odds of a Dec Fed rate hike, after Yellen’s commentary.     However, the upside seems restricted as the cable fails to regain footing amid resurgent demand for the US treasury yields.

Nothing of note for the cross in the day ahead, except for the speeches from BOE and Fed officials.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 137.50 (daily R1), above which 138.84 (Sept high) could be tested. On the flip side, support is seen at 136.55 (daily low) that at 136.20 (daily pivot/ 5-DMA).