GBP/JPY reverses Friday’s losses, but struggling to conquer 147.00 handle

After an initial dip to sub-146.00 level, the GBP/JPY cross regained traction and has now reversed all of its losses posted on Friday. 

The post-BoE selling pressure seems to have abated and the cross snapped two consecutive days of losing streak. A goodish recovery move around the GBP/USD major, coupled with an offered tone surrounding the Japanese Yen collaborated to the pair's strong up-move back to the 147.00 handle. 

   •  GBP/USD holding comfortably above 1.29 handle

The cross, however, failed to extend the up-move further beyond the said handle and has retreated few pips from session tops to currently trade around 146.70-75 band amid cautious sentiment surrounding European equity markets, which tends to boost the Japanese Yen's safe-haven appeal. 

Moreover, investors also seemed reluctant to place fresh bullish bets ahead of this week's important macroeconomic releases from the UK - inflation figures and monthly employment details, which should help determine the pair's next leg of directional move.

In absence of any major market moving economic releases, broader market risk sentiment would continued to play an important role in driving the cross through NA trading session on Monday.

Technical levels to watch

A follow through retracement back below mid-146.00s is likely to get extended back towards the 146.00 handle before the cross eventually drops to test 145.30-25 support ahead of the key 145.00 psychological mark.

On the upside, momentum above the 147.00 handle is likely to confront some resistance near 147.30 level, which if cleared has the potential to lift the cross towards its next important hurdle near 147.85 area.