GBP/JPY bid near 133.00 on UK data

The Sterling keeps the firm note on Friday, now sending GBP/JPY to the vicinity of the 133.00 handle.

GBP/JPY firmer ahead of Yellen

The cross is prolonging its sideline theme during the current month after advanced UK’s GDP figures have come in in line with initial estimates, showing the economy is expected to expand 0.6% QoQ during the second quarter and 2.2% on a yearly basis.

In Japan, inflation figures gauged by the National Core CPI have contracted 0.5% on a year to July, missing forecasts and adding to the already increasing scepticism on the ability of the BoJ to eventually reach the 2% target.

GBP/JPY key levels

As the moment the cross is gaining 0.05% at 132.68 and a break above 133.33 (high Aug.24) would expose 136.19 (23.6% Fibo of post-Brexit down move) and finally 137.77 (55-day sma). On the other hand, the initial support lines up at 128.77 (2016 low Jul.6) followed by 118.70 (low Jun.1 2012) and then 117.30 (low Jan.13 2012).