GBP/JPY clings to gains above 140.00 mark after UK construction PMI

After yesterday's retracement, the GBP/JPY cross regained traction on Thursday and built on to its momentum back above 140.00 mark following the release of UK construction PMI. 

Currently trading around 140.30-35 region, the cross added some weight after UK construction PMI came-in slightly better-than-expected and rose to 52.5 in February from 52.2 reported in the previous month.

Meanwhile, persistent selling pressure around the Japanese Yen, amid prevalent risk-on mood, was also seen lending support and collaborating to the pair’s up-move for the second consecutive session. 

It, however, remains to be seen if the cross is able to hold / build on the Thursday’s gains amid renewed Brexit fears against the backdrop of another Scottish independence referendum and Wednesday’s development in the House of Lords, seeking amendment to the Brexit bill.

Technical levels to watch

Momentum above 140.75 area (yesterday's high) could get extended towards 141.00 handle, above which the cross is likely to head towards 141.75-80 resistance area. On the downside, weakness back below 140.00 psychological mark, leading to a subsequent drop below session low support near 139.80-75 area, would turn the pair vulnerable to aim back towards retesting 200-day SMA support near 139.00 round figure mark.