GBP/JPY extends bullish momentum beyond 137.00 handle

The GBP/JPY cross extended its near-term upward trajectory and surpassed 137.00 handle to touch its highest level since Sept. 6.

Currently trading at fresh session peak around 137.30-35 region, the cross maintained its strong bid tone for eleventh session in the previous twelve and is all set to post fourth consecutive week of gains. 

This week's mixed UK economic data (CPI, labor market report and monthly retail sales data) has failed to extend any support to the pair's ongoing upward trajectory and the cross remains solely dependent on the price action around the Japanese Yen. A broad based JPY weakness has been a key factor contributing to the pair's upsurge of over 1000-pips from post US presidential election swing lows below 127.00 handle. 

Meanwhile, growing expectations of aggressive fiscal spending by Trump administration has kept sentiment surrounding US equity markets buoyant, which eventually has failed to benefit traditional safe-haven currency, JPY, and is further supportive of the pair's ongoing up-surge.

Next on tap would be speech from MPC member Ben Broadbent, which would be looked upon to grab some short-term trading opportunities. 

Technical levels to watch

Immediate resistance is pegged near 137.50 level above which the cross is likely to surpass 138.00 handle and dart towards September monthly high resistance near 138.85 area with 138.30 acting as intermediate resistance. On the flip side, weakness below 137.00 handle is likely to find support around 136.55 (session low) below which fresh selling pressure has the potential to drag the cross back below 136.00 handle towards 135.80 support area.