“¢ Renewed buying around the British Pound helped regain positive traction.
“¢ Subdued JPY price action does little to provide any additional boost/impetus.
The GBP/JPY cross traded with a mild positive bias for the fourth consecutive session on Monday and inched back closer to over one-week tops set in the previous session.
After Friday’s late pullback from the 147.00 handle, the cross regained some positive traction at the start of a new trading week and was being supported by fresh buying seen around the British Pound.
The GBP remained supported by the fact that the EU leaders granted the UK a second Brexit extension until Oct. 31 and got an additional boost on Monday after the UK Foreign Secretary Hunt said that the Brexit talks with the opposition Labour party were more constructive and detailed.
Meanwhile, a subdued/lacklustre trading action around the Japanese Yen did little to influence the momentum, with the GBP price dynamics turning out to be an exclusive driver of the pair’s momentum through the mid-European session on Monday.
Hence, it would be prudent to wait for a sustained strength/follow-through buying beyond the mentioned handle before traders start positioning for any further near-term appreciating move towards reclaiming the 148.00 handle en-route the 148.20-225 supply zone.
Technical levels to watch
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