GBP/JPY drops for 1st time in 5 days

The offered tone behind the yen is seen weakening a bit as we head towards the European open, lifting GBP/JPY cross from daily lows.

GBP/JPY reverts to 138 handle

Currently, GBP/JPY now trades -0.33% lower at 137.81, recovering from a brief dip to 137.50 lows. The GBP/JPY cross is seen making minor-recovery attempts as the JPY buying stalled over the last hour after the Japanese stocks managed to move-off lows at close.

The yen rallied across the board after the BOJ governor Kuroda said earlier in his speech that they had limits to what they can do at their Sept monetary policy review meeting.

While the cable extends its side-trend into early Europe, with markets awaiting fresh impetus from the UK services PMI data amid a holiday-thinned economic calendar today.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 138 (round figure), above which 138.88 (multi-week tops) could be tested. On the flip side, support is seen at 137.41 (5-DMA) that at 137 (round figure).