GBP/JPY unable to recover above 135.00

GBP/JPY is falling for the third trading day in a row. Today during the European session it bottomed at 134.48, hitting the lowest level since July 12. Afterwards, it bounced to the upside and it was hovering around 135.00.

The pair weakened amid a retreat of the pound in the market following the release of worse-than-expected UK manufacturing data. From the lows, it rebounded. The recovery was capped below 135.50 and then it dropped back into negative territory. GBP/JPY continues to hold a negative bias in the short-term ahead of the Bank of England decision on Thursday.

Technical levels

To the upside, resistance levels might be located at 135.40 (American session high), 136.25 (daily high) and 137.80 (20-day moving average). On the opposite direction, 134.50 (daily low), 133.25/30 (June 24 & 27 low) and 131.95 (July 7 high).