GBP/JPY sits above hourly 200-MA in Asia

GBP/JPY cross sits above hourly 200-MA in Asian session, however, further gains are being capped due to retreat in GBP/USD pair.

Eyeing weekly gains

The cross appears on track to end the three-week losing streak, given the current price is well above the weekly opening price of 130.79. A 100-pip drop from the current price of 131.80 is a easy job for this pair, however, the data calendar is light today. Thus, we are unlikely to get any GBP bearish surprise.

Furthermore, the data released this week showed no signs of post Brexit gloom and doom in UK. Dollar-Yen pair too has moved back above 100.00 levels. Thus odds of a positive weekly close are high.

GBP/JPY Technical Levels

Breach of immediate resistance at 133.21 (Brexit day low) would open doors for extension of rally to 133.87 (weekly 5-MA) – 134.00 handle. On the lower side, break below Asian session low of 131.40 could yield a drop to 130.00 (zero figure).