GBP/JPY drops below 136 handle as yen regains poise

The GBP/JPY cross came under fresh selling pressure and breached 136 levels as the yen regained footing across the board, following a negative start to the European markets.

GBP/JPY eyes 50-DMA at 135.23

Currently, GBP/JPY now trades -0.30% lower and hits fresh session lows at 135.75, as risk-off trades appear to have gathered pace amid lower European equities and oil prices.

Hence, the cross faces double whammy amid wide-spread risk aversion, with the demand for the safe-haven yen refueled at the expense of higher-yielding currencies such as the GBP.

The immediate focus now shifts towards the UK trade balance data due in less than an hour, which will provide fresh impetus on the cross.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 136.51 (5-DMA), above which 136.87 (daily R1) could be tested. On the flip side, support is seen at 135.23 (50-DMA) that at 135 (round figure).