GBP/JPY clings to gain near session tops, around mid-140.00s
|- Upbeat UK services PMI helped gain some positive traction on Tuesday.
- Fading safe-haven demand weighed on the JPY and remained supportive.
- Further gains are likely to remain capped amid the UK political uncertainty.
The GBP/JPY cross maintained its bid tone through the mid-European session on Tuesday and is currently placed near the top end of its daily trading range, around the 140.40-50 region.
A combination of supporting factors helped the cross to regain some positive traction, albeit the uptick lacked any strong bullish conviction and remained confined well within a broader trading band held over the past one week or so.
Supported by a combination of factors
The British Pound remained well supported by the fact that the incoming opinion polls have been indicating a majority for the UK Prime Minister Boris Johnson's Conservative Party at the upcoming election in December.
This coupled with Tuesday's release of stronger-than-expected UK services PMI, coming in at 50.0 for October as compared to 49.7 expected and 49.5 previous, further inspired bullish traders and provided an additional boost.
Adding to this, the prevalent risk-on mood, amid renewed optimism over a possible US-China trade deal later this month, continued weighing on the Japanese Yen's safe-haven status and remained supportive of the positive move.
However, the inherent uncertainty over the actual outcome of the UK snap election might hold investors from placing any aggressive bullish bets and turned out to be one of the key factors that might keep a lid on any runaway rally.
Hence, it will be prudent to wait for some strong follow-thorough buying beyond the 140.70 supply zone and the 141.00 handle before positioning for any further near-term appreciating move, possibly towards reclaiming the 142.00 mark.
Technical levels to watch
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