GBP/JPY jumps 100 pips to 145.02 on the Brexit deal news

• British Pound picked up a strong bid an hour ago after the news hit the wires that UK’s PM Theresa May has sealed a deal with the EU on financial services.
• GBP/JPY jumped 100 pips in the last 60 minutes and is currently trading above the 200-hour EMA.
•  The pair could test 145.42 (38.2% Fib R of Sept. 21 high/Oct. 26 low).

Currently, the GBP/JPY is trading at a session high of 145.10, having clocked a low of 144.02 earlier today.

The cross bounced off the 50-hour exponential moving average (EMA) an hour ago after reports hit the wires that UK’s Prime Minister Theresa May has sealed a deal with the European Union that would provide UK financial services companies continued access to European markets  after Brexit.

These reports come a day after the UK’s Brexit secretary Dominic Raab, in a letter the Commons Brexit committee published yesterday, struck an optimistic tone by stating that a wider deal could be in the offing within three weeks.

As a result, the GBP/JPY could remain solid bid for the rest of the day. The cross has cleared the 200-hour EMA a few minutes before press time and is now looking north toward 145.42 )(38.2% Fib R of Sept. 21 high/Oct.26 high).

The bullish break above the 200-hour EMA may fail if the equity markets turn red, pushing the JPY higher across the board.

GBP/JPY Technical Levels