GBP/JPY rebounds towards 139 as Yen pares gains

The cross in the GBP/JPY is reversing a dip to the mid-point of 138 handle and now swings back towards 139 barrier, tracking a minor-recovery in the USD/JPY pair.

GBP/JPY faces strong offers ahead of 5-DMA at 139.27

Currently, GBP/JPY drops -0.34% to 138.70, having regained fresh bids and now heads towards 139 handle. The sell-off in the GBP/JPY cross stalled at 138.35 in the last hour, allowing a minor recovery in the prices on the back of weakening demand for the yen across the board as risk-off cools a bit.

While on the GBP-side of the story, the cable moved-off lows and now heads higher in a bid to reclaim 1.31 handle, thus, aid the recovery in the cross. Markets now await the UK jobs data for fresh cues on GBP/JPY, while the broader market sentiment will continue to play a key role in the day ahead.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 139 (round number), above which 132.27/36 (5-DMA/ daily high) would be tested. On the flip side, support is seen at 138.35 (daily low) that at 137.69 (10-DMA).