GBP/JPY drops for the 1st time in 9 days, UK events eyed

The cross in the GBP/JPY paused its eight-day winning streak and dropped on Tuesday, as the yen regained footing across the board after Trump-led sell-off.

GBP/JPY holds above 5-DMA support

Currently, GBP/JPY trades -0.35% lower at 135 levels, recovering slightly from session lows struck at 134.79. The GBP/JPY cross reverses a dip to daily lows, although struggles to take on the recovery beyond 135 handle, as demand for the yen remains on the rise versus the greenback on the back of weaker treasury yields, which suggests a slightly risk-off market profile.

The bearish pressure is exerted also on the back of moderate losses seen in GBP/USD, in response to increased cautiousness ahead of the UK CPI report and BOE inflation report hearings due later in the European session ahead. While the US retail sales data will also remain in focus for further momentum on the USD/JPY moves.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 135.50 (psychological levels), above which 135.68 (2-month tops) could be tested. On the flip side, support is seen at 134.69 (5-DMA) that at 134.40 (daily S1).

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