GBP/JPY clears 100-DMA with ease, just shy of 162.00 level

As the British Pound's bullish momentum gained traction, the GBP/JPY pair surged past 3-week high and 100-day SMA resistance with ease to currently trade within striking distance of tapping 162.00 handle.

The pair extended yesterday's sharp rebound from 50-day SMA support near 158.00 on receding fears of 'Brexit' after the latest poll results continued to point towards increasing support to remain within the EU.

Moreover, extended risk-on rally across European equity markets for second straight day has seriously dented demand for perceived safe-haven, like the Japanese Yen and gold.

The combination of global risk-on sentiment and diminishing fears of 'Brexit' has sparked a sharp rally for the GBP/JPY pair that has now risen to its highest level in over 3-week. Moreover, the pair has also move above 100-day SMA for the first time since Nov. 2016 clearly indicating that the pair is more likely to extend its near-term bullish momentum.

Technical levels to watch

A follow through buying interest beyond 162.00 round figure mark resistance seems to lift the pair towards 162.50-55 strong resistance that the pair failed to conquer in March and April. A clear break through beyond 162.50-60 resistance should now open room for extension of the near-term upward trajectory towards March highs resistance near 164.00 round figure mark.

Meanwhile on the downside, 100-day SMA near 161.55-50 region now seems to provide immediate downside support. Weakness below this immediate support is likely to be limited and might be bought into near previous strong resistance, now turned strong support near 161.00-160.90 area.