- GBP/JPY gained some positive traction on Monday and snapped two days of the losing streak.
- The optimism over the easing of COVID-19 measures in the UK underpinned the British pound.
- A modest pickup in demand for the safe-haven JPY kept a lid on any further gains for the cross.
The GBP/JPY cross refreshed daily tops during the early European session, albeit retreated few pips thereafter. The cross was last seen trading with only modest gains, just below the 154.00 mark.
The cross attracted some dip-buying in the vicinity of mid-153.00s on Monday and stalled last week's retracement slide from levels beyond the key 155.00 psychological mark. This marked the first day of a positive move in the previous three sessions and assisted the GBP/JPY cross to recover a major part of its losses recorded on Friday.
As investors looked past last week's dovish Bank of England last week, the sterling found some support amid optimism over the possible easing of the remaining restrictions earlier than July 19. The new UK Health Secretary Sajid Javid will update MPs later this Monday on when the COVID-19 measures will be lifted in England.
The supporting factor, however, was offset by a pickup in demand for the safe-haven Japanese yen, which held traders from placing fresh bullish bets around the GBP/JPY cross. This makes it prudent to wait for some follow-through buying before positioning for any further gains amid absent relevant market moving economic releases.
Technical levels to watch
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