GBP/JPY surges through mid-146.00s, highest since mid-Nov.

   “¢   Receding fears of a no-deal Brexit continue to underpin the British Pound.
   “¢   The prevalent risk-off mood does little to hinder the ongoing positive move.

The GBP/JPY cross built on its strong positive momentum further beyond the 146.00 handle and spiked to 2-1/2 month tops in the last hour.

After a rather lacklustre trading action over the past few session, the British Pound picked up pace since the beginning of this week and was being supported by rumours of a possible delay in Britain’s exit from the European Union.

The British Pound got an additional boost in wake of the overnight media reports, which suggested that the UK PM Theresa May will finally allow Cabinet discussion on extending Article 50 beyond March 29 on Tuesday and might also propose formally ruling out a no-deal Brexit scenario.  

This coupled with another news that the UK Labour Party leader Jeremy Corbyn is ready to support a second referendum provided an additional boost and assisted the cross to decisively breakthrough the very important 200-day SMA on Monday.

Hence, today’s goodish up-move could further be attributed to some fresh technical buying above an important moving average, with bullish traders shrugging off the prevalent risk-off mood, which tends to underpin demand for the Japanese Yen’s safe-haven demand.

Meanwhile, comments by the BoE Governor Mark Carney and other MPC members, during the BoE’s quarterly inflation report hearings before Parliament’s Treasury Committee, did little to dampen a strong bullish sentiment surrounding the British Pound.

Technical levels to watch