GBP/JPY catches a bid as stocks rise

• Risk-on action in Asia hurts the Japanese Yen.
• GBP/JPY is on the rise, awaits range breakout.

The Japanese Yen is losing altitude in Asia, possibly due to risk-on action in the equities.

Currently, GBP/JPY is trading at 153.35 - up 0.30 percent on the day. Also, the cross has moved above the 50-hour moving average (MA) located at 153.28. However, the pair lacks bias as it has been restricted to a narrow range of 153.85 to 152.65 since last Friday.

An upside break of the trading range would signal resumption of the rally from the March 2 low of 144.99. Meanwhile, a downside break would set the tone for a corrective pullback.

As of writing, it appears the spot could violate the range on the high side, courtesy of the uptick in the Asian stocks - Australia's S&P/ASX 200 is up 0.22 percent, Japan's Nikkei has added 1.2 percent while Hong Kong's Hang Seng is reporting a 0.70 percent gain.

GBP/JPY Technical Levels

A break above 153.85 would open the doors to 156.07 (Jan. 25 high) and 156.61 (Feb. 2 high). On the downside, breach of support at 153.04 (5-day MA) could yield a pullback to 152.58 (April 13 low) and 152.00 (10-day MA).