GBP/JPY jumps above hourly 100-MA

Offered tone around Yen gathered pace in Asia on talks of fresh BOJ easing, pushing the GBP/JPY cross above the hourly 100-MA level of 135.77 levels.

Eyes UK data

UK labor data and wage growth figures for the month of August and July are due for release later today. Wage growth number is seen slowing down and that could pour cold water over all the optimism seen in the Brexit aftermath.

The data comes a day after the CPI numbers missed estimates. Pound was rocked by weak inflation numbers, but remains resilient compated to high yielding currencies like NZD.

Apart from UK data, news flow surrounding Bank of Japan’s (BOJ) rate decision due next week would continue to guide the pair. The cross was last seen trading around 135.85 levels.

GBP/JPY Technical Levels

On the hourly chart, multiple highs are seen around 136.00-136.10 levels. Hence, a break above the same is necessary if the pair intends to test 136.50 (hourly 200-MA), above which a major hurdle is noted at 138.32 (Sep 6 high). On the lower side, 135.77 (hourly 100-MA) and 135.53 (hourly 50-MA) are strong support levels, under which 134.47 (Sep 13 low) could be put to test.