GBP/JPY advances to multi-day tops, beyond 146.00 mark after Rees-Mogg hints to back May’s Brexit deal

   “¢   Rees-Mogg’s comments revive hopes that May’s plan may eventually pass through Parliament.
   “¢   Improving risk sentiment further weigh on JPY’s safe-haven status and remained supportive.

The GBP/JPY cross spiked to three-day tops in the last hour and was now seen building on the momentum further beyond the 146.00 round figure mark.

The cross finally broke out of its two-day-old consolidative trading range and picked up the pace on Tuesday after leading Brexiteer Jacob Rees-Mogg hinted that he could back the UK PM Theresa May’s Brexit deal.

Rees-Mogg’s comments revived the possibility for the May’s plan to eventually pass through the Parliament and turned out to be one of the key factors behind a sudden pickup in the GBP buying since the mid-European session.  

This coupled with improving global risk sentiment, as depicted a positive mood around equity markets, dented the Japanese Yen’s safe-haven status and further collaborated to the pair’s goodish intraday up-move.

It, however, remains to be seen if bulls are able to capitalize on the positive momentum or refrain from placing any aggressive bid as the focus now shifts to a possible third meaningful vote, expected to be held on Thursday.

In the meantime, the incoming Brexit-related news/developments might continue to influence sentiment surrounding the British Pound and produce some meaningful trading opportunities.

Technical levels to watch