GBP/JPY off session peak, holding minor gains above 132.00 level

Extending its recovery from Thursday's 4-week low near 131.00 mark, the GBP/JPY cross rose to mid-132.00s before retracing to currently trade with only marginal gain around 132.20-25 band.

Thursday's recovery was primarily led by a bearish tone surrounding the Japanese Yen but failed to gain further traction on the back of bearish price action surrounding the British Pound. On Friday, despite the offered tone around JPY seems to have lost momentum, steady trade in sterling has kept the GBP/JPY cross afloat with some marginal gains. 

In absence of any economic releases, the cross would continue to derive its movement from the prevalent risk-sentiment in the financial markets. 

Technical levels to watch

On the immediate upside, 132.50-70 region might continue to act as immediate resistance, which if cleared seems to assist the pair towards 133.00-133.10 resistance area, marked by a short-term descending trend-channel formation on 4-hourly chart. A decisive break-out of the channel resistance would pave way for additional recovery for the cross in the near-term.

On the flip side, weakness back below 132.00 round figure mark seems to drag the pair back towards 131.20 support, below which the pair is likely to aim towards 130.50 support area. Decisive break below 130.50 support now seems to open room for continuation of the pair's downward trajectory towards testing sub-129.00 level in the near-term.