GBP/JPY flat-lined at 132.25 amid range-bound trading action

After seesawing between minor losses and tepid gains, the GBP/JPY cross now seems to have stabilized and is currently trading around 132.25 region, nearly unchanged from yesterday's closing level. 

A broad based greenback recovery, as measured by the overall US Dollar index, has led to range-bound price-action on Wednesday. Moreover, an empty UK economic calendar is unlikely to provide any fresh impetus and hence, might limit volatility surrounding the cross. 

Meanwhile, cautious sentiment surrounding European equities is extending support to the safe-haven appeal of the Japanese Yen and restricting the cross to build on to its recent recovery gains.

Today's focus would be on the release of existing home sales data from the US, which might have diverging effect on the British Pound and the Japanese currency, eventually driving the GBP/JPY cross. 

Technical levels to watch

From current levels, 132.50 area seems to act as immediate resistance. On a sustained strength above this immediate resistance, the cross seems all set to move past 133.00 handle and head towards testing its next major resistance near 133.75-80 zone.

Meanwhile on the downside, weakness below 132.00 handle is likely to get extended towards 131.30, which if broken might now drag the pair back below 131.00 handle, towards testing 130.65-60 horizontal support.