Forex: GBP/JPY back above 126.00; Regional bourses support

FXstreet.com (San Francisco) - GBPJPY has inched back above the 126.00 level in Asia after trading a broad range between 125.65 and 126.60 overnight, reaching fresh 4-week lows in the process. Spot currently trades at its session high around 126.25 (vs. 125.95 late Tuesday), and is supported by the 100-day EMA and the 50% Fibonacci retracement of the decline from 133.46 to 118.75. Beyond the overnight peak, further advances may encounter resistance at 127.00 (Oct 30 low), then 127.50 (Oct 29 low). Bearish movement may target support at 125.50 (Aug 21 high) and 124.75 (Oct 11 low).

The current bid tone seen in GBPJPY is largely driven by investor's willingness to take on risk (JPY negative) as Asian shares trade with a positive bias. At the time of writing, Japan's Nikkei is up 0.14%; Australia's ASX is up 0.23%; Hong Kong shares are up 0.72%.