GBP/JPY testing to the upside on thin Monday volumes

• Guppy trader see some lift from Yen-based short action.
• Brexit remains a key factor for broader markets ahead.

The GBP/JPY pairing is trading into the 145.00 major handle in early Monday action, bolstered by recovering risk appetite in the Asian market session resulting in a soft decline in the JPY, but market volumes remain thin still and price moves could see plenty of whipsawing as more cash begins to flow back into the markets.

Monday's economic calendar sees a pairing of moderate indicators for Japan dropping at 05:00 GMT, with September's Coincident Index and Leading Economic Index pairing for September expected to come in unchanged from their previous figures at 114.6 and 103.9 respectively, but market flows are unlikely to find much reason to alter their course on the readings as investors remain focused on bigger fish.

On the UK docket, a speech from the Bank of England's (BoE) Governor Mark Carney is expected at 18:30 GMT, though the governor's words are unlikely to drive much momentum in their own right as the BoE captain gives his thoughts on Alan Greenspan's new book, "Capitalism in America: A History" at a Policy Exchange event in London.

Brexit remains the key driver of the Sterling through broader markets, and investor sentiment seems hung in the middle after the weekend's successful EU Brexit summit, and traders are turning their eyes to the next big stumbling block: a UK parliamentary vote on Prime Minister Theresa May's current proposal, a raft that Eurosceptics within the UK's House of Lords is widely expected to outright reject, and potential for further bearish Brexit headlines remains.

GBP/JPY Technical Levels