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  • GBP/JPY regains positive traction for the third consecutive session on Wednesday.
  • Bulls remained resilient despite the ever-increasing number of coronavirus deaths.
  • A positive tone in the equity markets undermined the JPY and remained supportive.

The British pound gained some traction in the last hour and lifted the GBP/JPY cross to fresh session tops, around the 134.70 region.

The cross reversed an early dip to the 133.75 region and moved back into the positive territory for the third consecutive session on Wednesday – also marking its fourth day of a move up in the previous five.

The cross moved back closer to multi-week tops set on Tuesday and the uptick was solely sponsored by the emergence of some fresh buying around the British pound, though lacked any obvious catalyst.

The GBP bulls continued showing some resilience at lower levels and also seemed rather unaffected by a big jump in the number of fatalities from the COVID-19 pandemic in the United Kingdom on Tuesday.

The fact that the UK Prime Minister Boris Johnson, albeit remained in the intensive care, was last reported to be in a stable condition seemed to be the only factor lending some support to the sterling.

Apart from this, a mildly positive tone around the equity markets, despite fresh concerns over the coronavirus pandemic, undermined the Japanese yen’s safe-haven demand and remained supportive.

It will now be interesting to see if the cross is able to capitalize on the move, confirming a bullish break through a near two-week-old trading range, or once again fails near the key 135.00 psychological mark.

Technical levels to watch