GBP/JPY struggling at 136.00 handle

Yen maintained its strong bid tone, with the GBP/JPY cross struggling to register any meaningful recovery to currently trade around 136.00 handle. 

After plunging by around 380-pips from session high of 139.30 to a two-week low level of 135.50, the pair's tepid recovery to 137.00 during European session got sold into. 

Traders rushed to cover their bearish bets against Japanese currency after BOJ left rates unchanged at -0.1%, as against broad market expectations of pushing the rates further into negative territory to -0.3%. 

Adding to this cautious sentiment across European equity markets is also boosting the safe-haven appeal of the traditional safe-haven currency, Yen, and is restricting any swift recovery for the pair.

Technical levels to watch

On a sustained weakness below 136.00 handle, the pair seems to break through session low and 135.00 psychological mark support, and head towards testing 134.40-30 support area marked by a short-term descending trend-channel formation on 4-hourly chart.

Meanwhile on the upside, 137.00 round figure mark now seems to have emerged as immediate barrier, which if cleared has the potential to boost the pair further towards 137.60-65 intermediate resistance ahead of channel resistance near 138.65-70 region.