GBP/JPY up for the day, still under pressure

GBP/JPY is about to post the second gain in a row but it has not been able to rise significantly and still remains below key technical levels and under pressure, near the lows of the month.

Last week the pair extended the decline after the Bank of England announced stimulus measures and bottomed on Friday at 132.23, the lowest level since July 11. From there it bounced to the upside, rising at a slow pace.

The recovery rally found resistance today at the 134.00 handle and from there it pulled back. Near the end of the day, the pair was trading at 133.55/60, up 0.35% for the day. Volatility in the forex market remains lows during all day. On Tuesday, economic data from China will be released and in the United Kingdom the industrial production report.

Still in a bearish pattern

GBP/JPY continues to move inside a bearish channel that could offer dynastic resistance around 135.40 and to the downside, it could limit the decline around 130.40/60; before the mentioned level, a strong support around 132.00 is seen.