GBP/JPY peeps above 23.6% Fibo

Yen is being offered now, helping the GBP/JPY and other Yen cross erase early losses. GBP/JPY pair is now sitting above 136.04 (23.6% of 160.12-128.60).

Bearish daily 5-MA & 10-DMA crossover

The recovery from the session low of 135.64 levels appears to be failing with prices nearing 5-DMA hurdle of 136.23. The cross clocked high of 136.20 before falling back to 136.10 levels.

Data released today showed Japan machinery orders in July rose 4.9% m/m, beating the estimated drop of 2.9%. The positive data is neither helping Nikkei (down more than 1.5%) nor the Japanese Yen. Meanwhile, downward revision of the UK GDP forecast by the British Chamber of Commerce too is being ignored.

GBP/JPY Technical Levels

Breach of 10-DMA hurdle of 136.41 would expose Friday’s high of 137.13. A violation there could yield 138.83 (Sep 2 high). On the other hand, a breakdown of support at 135.64 would shift risk in favor of a drop to 134.91 (50-DMA), under which a major support is seen 132.23 (Aug 5 low).