GBP/JPY erases gains, but defends 150.00 handle

GBP/JPY has faded the spike to three-week high of 150.49, but holds above 150.00 handle for now.

Focus on Brexit

As per BBC report, Prime Minister May due to update the Commons on Monday on the progress made during last week's summit of EU leaders in Brussels.

Top business lobbies in the UK have called for a swift Brexit transition deal. It is widely believed that "a no deal" scenario would be bad for the UK. The markets seem to agree with this line of thinking as Pound usually drops on heightened odds of 'no deal' or 'hard Brexit' scenario.

May's comments are likely to influence demand for the Pound. Meanwhile, the JPYmay catch bid if the equity markets react negatively to the geopolitical concerns.

GBP/JPY Technical Levels

The pair currently trades at 150.10. A break below 150.00 (zero figure) would open up downside towards 149.26 (Oct 13 high) and 148.98 (5-DMA). On the other hand, a break above 150.49 (session high) could yield rally to 151.00 (zero levels) and 151.60 (Sep 27 high).