GBP/JPY retreats from highs, still well bid at 132.00 handle

Having jumped to a six-day high level of 132.44, the GBP/JPY cross has now retraced from session peak and is currently hovering around 132.00 handle.

Currently trading marginally below 132.00 mark, the cross ran through some offers amid renewed selling pressure around the GBP/USD pair following a slight disappointment from higher-than-expected drop in UK mortgage approvals, which negated the data showing better-than-expected rise in consumer credit and net lending to individuals. 

Moreover, as the post OPEC-deal led optimism receded, a minor pull-back in the USD/JPY major (from multi-day highs) is also contributing to the pair's retracement. 

Focus now shifts to US economic releases, which would derive the safe-haven appeal of the Japanese Yen and eventually might provide fresh impetus for the GBP/JPY cross.

Technical levels to watch

Below 132.00 handle, 131.80-70 area might attract some buying interest and hence, is likely to protect further downside. However, a decisive break below 131.80-70 support is likely to extend the reversal back towards 130.90-85 horizontal support. On the flip side, sustained move back above 132.25-30 area should now assist the pair to surpass 132.50 resistance zone and head towards testing 132.85-90 resistance area.