GBP/JPY off lows, Brexit kicks off

GBP/JPY cross opened lower after UK PM Theresa May opened the doors for Brexit, but Sterling recovered losses helping the cross trade around 131.22 levels.

Brexit kicks off

Over the weekend, UK PM Theresa May said the article 50 would be triggered by March 2017. This led to a gap down opening in GBP/USD pair. Consequently, GBP/JPY cross hit a low of 130.75.

However, gap filling is under progress in GBP/USD, thus the cross managed to trim losses. Ahead in the day, UK PMI manufacturing number and the broader market sentiment could influence the pair.

GBP/JPY Technical Levels

A break above 131.51 (session high) would expose 132.44 (Sep 29 high). Further gains could run into wall of resistance at 133.61 (50-DMA). In terms of technical pattern, we see a bullish crossover between 5-DMA and 10-DMA.

On the other hand, a break below 130.75 (session low) would open doors for a drop to 129.64 (Sep 27 low). A violation there could yield 129.17 (Aug 16 low).