GBP/JPY drops below 135.00, fresh Sept low

GBP/JPY broke below the 135.00 zone and extended the decline. It bottomed at 134.65, hitting the lowest level since August 31. The pair remains near the low, under pressure as the pound continues to slide across the board.

The UK currency is among the worst performers in the market on Tuesday. It has been moving with a bearish bias since the beginning of the day and accelerated the decline after inflation data from the UK. More data will be released tomorrow (employment) and on Thursday the Bank of England will announce its decision on monetary policy.

The pair continues to move with a bearish bias, as it has been the case since last week, extending the retreat from 138.83 (Sep 02 high). Since then it has fallen 400 pips. Currently, it trades at 134.75, 110 pips below yesterday’s closing price.

Technical levels to watch

To the downside, support levels could be located at 134.65 (daily low),134.40 (Aug 29 high) and 133.30 (Aug 24 high & Aug 30 low).  On the opposite direction, resistance might be seen at 135.15 (Asian session low), 136.05/10 (daily high) and 136.40 (Sep 08 high).