GBP/JPY holding just above 148.50

• Sterling’s rough ride on Monday sees the Guppy back into the middle.
• A thin calendar for Tuesday leaves Brexit headlines and holiday volumes in Asia in the driver’s seat.

The GBP/JPY is trading just north of 148.50 after whipping in Monday’s action, peaking at 149.42 before bedding back down within last week’s range as Sterling traders look for reasons to push the GBP higher.

Tuesday will be delivering little to no meaningful data on the economic calendar for the Sterling, and traders will be keeping an eye on headlines as Brexit continues to swirl around the toilet bowl, with UK Prime Minister Theresa May looking to concede some of the UK’s abilities to negotiate trade deals with other countries after they leave the Eurozone in an effort to snap the deadlock surrounding Brexit negotiations, effectively defanging what Eurosceptics had envisioned for their big split with the EU.

Japan is equally clear of data figures for today, but Asia session markets are likely to remain twitchy with China on holidays for the rest of the week, meaning early volumes will be tight in the early trading sessions this week.

GBP/JPY levels to watch

The Guppy remains in a reasonably bullish stance, but the pair remains trapped under a four-month high just shy of the 150.00 major handle, and Daily candles have the GBP/JPY hung up on the 200-day EMA near 148.00, while support builds up from the 200-hour EMA from 148.30.