GBP/JPY breaks below 130.00, Yen bulls on rampage

Bid tone around Yen gathered pace in Asia, pushing the GBP/JPY cross below 130.00 levels for the first time since July 8.

Drops for third straight session

The cross is trading lower for the third straight session. Yen demand spiked after USD/JPY pair finally breached a key support level of 100.71 (50% of 2011 low – 2015 high). Moreover, the cross has also been feeling the brunt of the drop in the GBP/USD pair from 1.31 levels to 1.2850 levels.

Ahead in the day, the focus would be on the UK consumer price inflation data release. Demand for the Yen would also be influenced by the US CPI release later today.

GBP/JPY Technical Levels

The cross was last seen trading around 129.70 levels. A break below 129.58 (July 7 low) would expose psychological level of 129.00, under which the cross could target 128.60 (post Brexit low). On the higher side, a recover above 130.00 (zero figure) would expose 130.92 (5-DMA). A violation there could yield 132.10 (10-DMA).