GBP/JPY Technical Analysis: Rebounds from multi-week lows, retakes 142.00 handle

• GBP/JPY reverses an early dip to sub-141.00 levels.
• Upbeat UK PMI remained supportive of the uptick.

The GBP/JPY cross reversed an early Asian session dip to sub-141.00 levels, or over five-week lows, and refreshed daily tops following the release of stronger-than-expected UK Services PMI.

The cross showed some resilience below the 141.20-30 confluence region – comprising of 38.2% Fibonacci level of the 130.42-147.96 August to December positive move and 50-day SMA.

Slightly oversold conditions on hourly charts turned out to be one of the key factors that prompted some intraday short-covering move, with bulls now eyeing a sustained move beyond the 142.00 handle.

Meanwhile, neutral technical indicators on the daily chart haven't been supportive of a firm near-term direction and thus, warrant caution before placing any aggressive bets for a further positive move.

On the flip side, the 141.00 handle might continue to act as immediate support, which if broken decisively will set the stage for a slide towards challenging the key 140.00 psychological mark.

GBP/JPY daily chart