GBP/JPY struggling to extend recent up-move beyond 200-DMA
|After an initial dip below 143.00 handle, the GBP/JPY cross recovered around 100-pips from session low but remained below over 5-month high touched on Thursday.
Currently trading around 143.85-90 band, the cross caught fresh bids after better-than-expected UK Construction PMI for November. However, the cross lacked follow through momentum and was seen struggling to gain further traction beyond the very important 200-day SMA.
The prevalent risk-off mood, as depicted by negative sentiment around European equity markets, is extending support to the Japanese Yen's safe-haven appeal and restricting further upside.
With UK economic data out of the way, focus shifts to one of the closely watched US economic indicator, monthly jobs report (NFP), which is traditionally know for infusing substantial volatility in global financial markets, eventually derive JPY's safe-haven demand and provide some impetus for the cross.
Technical levels to watch
Bulls would be eying for a decisive move back above 144.00 handle, above which the cross is likely to aim back towards Thursday's multi-month high resistance near 145.00-145.20 region en-route its next major resistance near 148.00 mark. On the downside, 143.00 round figure mark now seems to have emerged as immediate support, which if broken might trigger a short-term corrective slide towards 141.00 mark with 142.35-30 region acting as intermediate support.
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