GBP/JPY off session low, still in red for fourth straight session

After failing to defend 136.00 handle on Wednesday, the GBP/JPY cross dropped to a six day low before retracing few pips to currently trade around 135.65 region.

The cross traded with negative bias for fourth straight session amid prevailing uncertainty over further BOJ monetary easing at its monetary policy meeting next week. Adding to this, an upward revision of the Japanese Q2 GDP print, released earlier on Thursday, supported the bid tone surrounding the Japanese currency.

Moreover, cautious equity market is also supporting Yen's safe-haven appeal and exerting further selling pressure around the cross. 

With an empty UK economic docket, the cross might continue to take cues from the prevalent risk sentiment in equity markets. 

Technical levels to watch

From current levels, 135.40 remains immediate support to defend, which if broken decisively is likely to attract fresh selling pressure and drag the cross below 135.00 psychological mark towards testing its next support near 134.65-60 region. On the flip side, recovery momentum above 136.00 handle now seems to confront resistance near 136.50 level ahead of a strong resistance at 137.00 round figure mark.