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GBP/JPY holds above 151.00 handle, near 2-month tops

   •  JPY weighed down by fading safe-haven demand on improving risk appetite.
   •  UK data provides an additional boost to GBP and supporting the bullish move.

The GBP/JPY cross built on last week's strong rebound from the very important 200-day SMA and is currently placed at 2-month tops, just above the 151.00 handle.

The cross continued gaining traction at the start of a new trading week and held in positive territory for the fifth consecutive session. A slight improvement in investors' appetite for riskier assets, as depicted by bullish trading sentiment around equity markets despite US-China trade tensions, weighed on the Japanese Yen's safe-haven appeal and was seen as one of the key factors driving the pair higher. 

This coupled with a goodish pickup in the GBP demand, with the GBP/USD pair finally breaking through the 1.4100 handle on the back of upbeat UK Halifax HPI, provided an additional boost and further collaborated to the pair's strong bid tone through the early European session on Monday.

It would now be interesting to see if bulls are able to make it through the 151.25 supply zone, which if cleared might pave the way for an extension of the pair's near-term upward trajectory.

Technical levels to watch

Momentum beyond the mentioned hurdle is likely to get extended towards 151.70 horizontal resistance, above which the cross is likely to surpass the 152.00 handle and head towards testing 152.35-40 supply zone.

On the flip side, any meaningful retracement might continue to find support near mid-150.00s and is followed by the key 150.00 psychological mark, which if broken could drag the cross back towards the 149.00 handle.

Author

Haresh Menghani

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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