GBP/JPY struggling to reclaim 133.00 after BOE-led sharp slide

A tepid recovery in the British Pound is helping the GBP/JPY cross to bounce-off a three-week low level, touched in the aftermath of BOE-led sharp slide. 

After consolidating in a trading range around 135.00 psychological mark during early half of the week, the pair finally broke-down on Thursday after BOE surprised market by expanding its Asset Purchase Facility by 60 billion pounds, taking the total value to 435 billion pounds. 

The pair subsequently broke below 133.00 handle, which now seems to hinder the pair's recovery from multi-week low level. In absence of any major economic releases during European session, the pair would continue to be driven by sentiment surrounding the British Pound.

Meanwhile, the release of US monthly jobs report during NA trading session, which could trigger some diverging moves in the GBP/USD and the USD/JPY pairs, might provide some impetus for the GBP/JPY cross. 

From technical perspective, the pair continues to drift lower within a short-term descending trend-channel formation and hence, remains vulnerable to continue drifting lower in the near-term.

Technical levels to watch

Recovery momentum above 133.00 handle now seems to trigger a fresh bout of short-covering rally that could lift the pair back towards 134.00 handle before heading towards 134.50 support break-point, turned strong resistance. 

On the flip side, 132.50 (Thursday's swing low) remains immediate support to defend, which if broken would open room for continuation of the near-term downward trajectory towards testing the descending trend-channel support near 131.50-40 region.