GBP/JPY: better bid, but stuck at 100-day MA, eyes UK services PMI

• Risk reset has put a bid under JPY crosses.
• GBP/JPY is stuck at 100-day moving average (MA) hurdle.
• Better-than-expected UK services PMI could yield an upside break.

The uptick in the US stocks and S&P 500 futures and talk of US-China trade wars being blown out of proportions seems to have put a bid under the JPY pairs.

As of writing, the GBP/JPY cross is trading at 150.56 - up 0.23 percent on the day. The 100-day MA hurdle is lined up at 105.60.

A sustained break above the key moving average will likely happen if the UK March services PMI, due at 08:30 GMT today, prints above the March figure of 54.5 index points. Also, stocks need to put on a good show to keep the JPY bulls at bay.

GBP/JPY Technical Levels

The 100-day MA is a big hurdle, given the pair failed to beat the same on March 28 and fell to 148.38 in the next three days.

A close above 150.60 (100-day MA) would allow a stronger rally to 151.97 (Jan. 30 low) and 152.17 (61.8 percent Fibonacci extension of the sell-off from Feb. 2 high and Mar. 2 low).

On the downside, a move below 150.24 (session low) could yield a pullback to 149.68 (5-day MA) and 149.49 (10-day MA).