GBP/JPY takes on the recovery above 138 handle

The GBP/JPY cross is seen extending its recovery mode into early Europe, with the rate now pushing further beyond 138 handle.

GBP/JPY eyes daily R1 at 138.34

Currently, GBP/JPY now trades +0.33% higher at 138.06, having faced stiff resistance near 138.20 region. The GBP/JPY cross is seen making minor-recovery attempts on 138 handle amid fresh buying interest seen around the cable.

However, the recovery appears to lack momentum as the JPY bulls regain lost ground somewhat heading into the European open. Attention now turns towards the US economic releases due later in the NA session amid a lack of fresh fundamental drivers from the UK docket.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 138.34 (daily R1), above which 138.88 (multi-week tops) could be tested. On the flip side, support is seen at 137.83 (5-DMA) that at 137 (round figure).