GBP/JPY struggles to extend gains above 132.00

GBP/JPY is having a tough time extending gains above 132.00 handle as caution ahead of the BOJ decision is forcing investors to remain on the sidelines.

Stuck at Pivot

Offered tone around Sterling gathered pace yesterday pushing the GBP/JPY pair to a low of 131.65. A minor attempt of recovery in Asia stalled at the daily pivot level of 132.27 levels.

The cross awaits BOJ policy review. From deepening of the negative rates to operation reverse twist, a lot has been speculated. However, a significant majority sees no action from the BOJ.

GBP/JPY Technical Levels

A break above 132.27 (pivot level) would open doors for 132.60 (hourly 50-MA). A violation there could yield a move to 133.00 handle. On the lower side, failure to hold above 132.00 would expose 131.67 (hourly chart support), under which losses could be extended to 131.00 handle.