GBP/JPY breaks lower towards 5-DMA, UK Autumn statement - Key

After a brief phase of consolidation below 138 handle, the cross in GBP/JPY is finally breaking lower, closely following the yen dynamics amid low volumes and minimal volatility.

GBP/JPY extends further below 138 handle

Currently, GBP/JPY trades -0.20% lower at fresh session lows of 137.76, unable to resist above 138 handle. The GBP/JPY cross extends the downside, partly driven by renewed selling witnessed in the USD/JPY pair, as the major corrects lower after yesterday’s rally.

While bearish tone seen behind the cable also collaborates to the downbeat sentiment around the cross, failing every upside attempt to reclaim 138 handle.

Next of note for the cross remains the UK Treasury’s Autumn Forecast Statement, US durable goods data and FOMC minutes, which is likely to have significant impact on both JPY and GBP.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 138.16 (daily pivot), above which 138.84 (previous high) could be tested. On the flip side, support is seen at 136.64 (10-DMA) that at 136.18 (daily S3).