GBP/JPY darting back towards 146.00 handle

The GBP/JPY cross was seen building on to its recent break-out momentum above the very important 200-day SMA resistance and is now inching closer to over 6-month highs touched last week.

Currently trading around 145.80 region, testing session peak, the cross extended its near-term bullish trajectory, and after advancing for eight consecutive weeks, gained fresh traction on Monday amid prevalent risk-on mood in wake of weekend deal over oil output cut between OPEC and non-OPEC members. 

Even from technical perspective, sustained trading above 200-day SMA, for the first time in 2016, is suggestive of a bullish break-out and has thus increased possibilities of continuation of the pair's appreciating move in the near-term. 

Technical levels to watch

On the upside, last week's multi-month high near 146.00 handle is likely to act as immediate resistance above which the pair seems to dart towards 147.00 round figure mark before eventually heading towards its next major resistance near 147.95-148.00 region. On the flip side, 145.00 psychological mark now becomes immediate support to defend, which if broken might trigger a corrective slide back towards 200-day SMA support near 143.30 region, with 144.40 and 144.00 mark acting as intermediate support levels.