GBP/JPY building on momentum above 200-DMA

The GBP/JPY cross extended its near-term bullish trajectory and is now sustaining its strength above the very important 200-day SMA.

Currently trading comfortable above 145.00 mark, closer to over 5-month high touched on Monday, an offered tone around the Japanese Yen had been a key drive of the pair's up-move since the beginning of November and also helped it to recover from Monday's early weakness led by Italy's 'NO' vote. Monday's up-move was further supported by strong reading from UK services sector, which added on to last week's upbeat UK Construction PMI print for November and is further contributing to the pair's bid tone for the sixth consecutive session on Tuesday. 

Even from technical perspective, decisive move above 200-day SMA, for the first time since Nov. 2015, is further pointing to a bullish set-up and thus, increasing possibilities of additional near-term up-move even from current levels. 

Technical levels to watch

From current levels, momentum above 146.00 handle (yesterday's multi-month high) has the potential to lift the cross beyond 147.00 round figure mark towards its next hurdle near 147.95-148.00 region. On the downside, sustained weakness below 145.00 mark, leading to a subsequent break below session low support near 144.50 level, is likely to accelerate the slide back towards retesting 200-day SMA, resistance turned support, near 143.65-60 region.