GBP/JPY slumps almost 100-pips amid GBP weakness

The GBP/JPY cross is on a declining trend so far this month, now extending the downside towards 131 handle, with nearly 100-pips eroded as we step into the European session.

GBP/JPY trades below all major DMAs

Currently, GBP/JPY trades -0.22% lower at fresh session lows of 131.36, extending sell-off from 132.25 levels.  The GBP/JPY cross resumed its recent downtrend, reversing yesterday’s temporary rebound, as the GBP bears fight back control amid risk-off market profile, spurred by softer global equities and lower oil prices.

The cross fails to find some support, despite moderate gains in the USD/JPY pair amid a broadly higher greenback. Focus now shifts towards the US economic releases and Fed speaks due next week for further momentum on both GBP and JPY.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 131.76 (5-DMA), above which 132.24 (daily top) could be tested. On the flip side, support is seen at 130.72 (daily S1) that at 130.00 (round number).'