GBP/JPY slips to 133.00

GBP/JPY dropped to 133.00 handle after dovish comments from BOE’s McCafferty strengthened the offered tone around GBP.

Hovers above 133.00

The cross hovers above 133.00 handle as losses are being capped by the resilience in the Dollar-Yen pair. Moreover, the drop is largely due to the weakness in the GBP/USD pair. BOE’s McCafferty called for a gradual approach and remains in support of further rate cuts and increase in size of the QE.

The pair was last seen trading around 133.16 after having clocked a low of 133.00.

GBP/JPY Technical Levels

A break above 133.29 (hourly 50-MA) would open doors for 133.73 (hourly 100-MA). A violation there could yield 134.88 (hourly 200-MA). On the lower side, breach of 133.00 would shift risk in favor of a drop to 132.23 (Aug 5 low), under which a major support is seen directly at 130.00.