GBP/JPY off lows retakes 135.70 ahead of UK CPI

The broad-based softer tone around the British pound has dragged GBP/JPY to fresh lows near 135.20, albeit it has managed to regain some pips afterwards.

GBP/JPY focus on UK data

The cross is extending its sideline pattern during the first half of the week, looking to stabilize above the 135.00 handle after the recent drop from monthly peaks near 139.00 the figure (September 2).

Later in the session UK’s inflation figures are expected to keep the attention on GBP. Consensus sees headline CPI rising 0.7% on a year to August and Core CPI up 1.4% on a yearly basis.

In the meantime, the Japanese safe haven remains vigilant on the prospects of further easing by the BoJ at its meeting later in the month.

GBP/JPY key levels

As the moment the cross is losing 0.07% at 135.74 facing the next support at 134.79 (20-day sma) followed by 128.77 (2016 low Jul.6) and finally 118.70 (low Jun.1 2012). On the other hand, a breakout of 136.19 (23.6% Fibo of post-Brexit down move) would expose 138.88 (high Sep.2) and then 140.78 (38.2% Fibo of post-Brexit down move).