GBP/JPY sees sharp 50-pips sell-off

The GBP/JPY cross failed to sustain above 131 handle and came under fresh selling pressure over the last hour, mainly driven by aggressive selling in the cable.

GBP/JPY losing sight of major DMAs

Currently, GBP/JPY now trades 0.24% lower at 131.41, having slumped to fresh session lows of 131.33 last minutes. The GBP/JPY cross trades with size-able losses as the GBP/USD pair witnessed a steep drop on a break below 1.30 handle amid broad based US dollar strength.

Moreover, the recovery in the USD/JPY pair faced rejection at 101.50 levels, with the major now consolidating around 101.30, offering little help to the bulls at present. Next of note for the cross remains the US macro updates due later in the NA session.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 132.05 (daily pivot), above which 132.56 (5-DMA) could be tested. On the flip side, support is seen at 131.24 (post-BOE) that at 130.80.