GBP/JPY keeps the red post UK PMI, still holding above 146.00 mark

The GBP/JPY cross stalled its recent upward trajectory and traded with a mild negative bias for the first day in the previous nine sessions. 

The latest release of UK construction PMI, dropping to 54.8 in June as compared to 56.0 in May and 55.0 expected, added to Monday's disappointing UK manufacturing PMI and did little to attract any fresh buying interest around the British Pound.

This coupled with the prevalent cautious environment, in wake of North Korea's latest ballistic missile launch, was seen extending some support to the Japanese Yen's safe-haven appeal and contributed to the softer tone surrounding the cross. 

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Despite the pull-back, the cross has held above the 146.00 handle and today's price action would still be categorized as consolidative following the recent upsurge of 700-pips over the past two weeks. Hence, it would be prudent to wait for a strong follow-through selling pressure before confirming that the cross might have topped out in the near-term.

Technical levels to watch

Weakness below the 146.00 mark might continue to find some support near 145.70 level, below which the cross is likely to correct back towards the key 145.00 psychological mark.

On the upside, 146.70-75 area now seems to act as immediate resistance, which if cleared seems to pave way for continuation of the pair's strong up-move even beyond the 147.00 handle towards 147.80 resistance en-route yearly tops near 148.10 level.