GBP/JPY sits at fresh yearly tops, around mid-145.00s
|The GBP/JPY cross prolonged its strong near-term bullish momentum and is currently stationed at fresh yearly tops around mid-145.00s.
The British Pound continues to benefit from a slew of upbeat UK PMI prints (manufacturing and construction PMIs), released this week, and the latest positive trigger came from today's services PMI, coming-in 55.8 for April as compared to 54.5 expected and previous month's 55.0.
• UK purchasing managers' indices offer comfort on growth - ING
Adding to this, improving investors' risk-appetite, as depicted by positive sentiment surrounding European equity markets, and receding geopolitical tension has failed to lend any support to the Japanese Yen's safe-haven appeal and further collaborated to the pair's strong up-surge to the highest level since Dec. 22.
• BOJ’s Kuroda: There might be some geopolitical risks to Asian economy
With investors still dealing with latest worries over a possible 'hard Brexit' scenario, offered tone surrounding the Japanese Yen remains an exclusive driver of the pair's strong upward trajectory from yearly lows touched during mid-April.
• European Commission is ready to start negotiations on Brexit - Rabobank
Technical levels to watch
The ongoing momentum seems strong enough to lift the pair further towards 145.75 resistance, above which the pair seems more likely to break through the 146.00 handle and aim towards testing its next major hurdle near 146.80-85 region.
On the flip side, 145.00 mark now seems to protect immediate downside, which is followed by a strong horizontal support near 144.60 level. A follow through retracement below the said support levels might trigger a corrective slide below the 144.00 handle towards weekly lows support near 143.75-70 area.
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