GBP/JPY clings to modest gains near session tops, remains below 150.00 mark
- GBP/JPY gained positive traction on Friday and snapped three days of the losing streak.
- The British pound got a minor lift following the release of upbeat UK PMI print for April.
- An uptick in the equity markets undermined the safe-haven JPY and remained supportive.
The GBP/JPY cross held on to its intraday gains through the first half of the European session, albeit lacked any follow-through and remained capped below the key 150.00 psychological mark.
A combination of factor assisted the cross to regain some positive traction on the last day of the week and stage a modest bounce from the vicinity of monthly lows, around the 149.40-35 region. The prevalent bearish sentiment surrounding the US dollar extended some support to the British pound, which got an additional boost from better-than-expected UK PMI prints for April.
On the other hand, a positive tone around the US equity futures undermined demand for the safe-haven Japanese yen and extended some additional support to the GBP/JPY cross. That said, renewed fears about another dangerous wave of coronavirus infections in some countries might continue to weigh on investors' sentiment, which might act as a headwind and cap the gains for the cross.
Even from a technical perspective, acceptance below the 150.00 mark might have already set the stage for additional near-term weakness. Hence, any subsequent move back above the mentioned handle could be seen as a selling opportunity and runs the risk of fizzling out quickly. The GBP/JPY cross seems poised to prolong its corrective pullback from over three-year tops touched earlier this April.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
