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  • The UK House of Commons confirmed to have received an application for an emergency Brexit debate.
  • The headlines prompted some aggressive intraday short-covering move around the GBP crosses.
  • Reviving safe-haven demand underpinned JPY and kept a lid on any strong follow-through up-move.

The GBP/JPY cross recovered a major part of its early slide back closer to multi-year tops, albeit struggled to extend the momentum further beyond the 128.00 handle.
 
The British Pound regained some positive traction and rallied across the board in reaction to a confirmation by the UK House of Commons that an application for emergency Brexit debate has been submitted. Speaker John Bercow is pretty much guaranteed to approve the motion and allow the debate to run until 21:00 GMT.

UK political/Brexit headlines continue to infuse volatility

The headlines offered nothing new but the fact that the rebel/opposition may advance a bill to block a no-deal Brexit, even before the government tables its own motion to hold new elections, seemed to be one of the key factors that prompted some aggressive short-covering move around the GBP crosses.
 
The upside, however, remained capped as market participants still see the risk of possible UK polls – likely on October 14, which coupled with reviving safe-haven demand underpinned the Japanese Yen and further collaborated towards keeping a lid on the pair’s solid intraday up-move of nearly 200-pips.
 
Hence, it will be prudent to wait for a strong follow-through buying before confirming that the cross might have actually bottomed out in the near-term or positioning for any further near-term recovery back towards the key 130.00 psychological mark.

Technical levels to watch