GBP/JPY resumes bullish momentum, fast approaching 154.00 mark

After losing its upside momentum on Monday and an initial dip below 152.00 handle on Tuesday, the GBP/JPY cross resumed its strong bullish momentum to currently trade back above 153.00 handle, within striking distance of 154.00 mark.

The pair attracted fresh bids at lower levels as global risk aversion receded after the three new Brexit opinion polls showed dominant position for pro-EU, 'Remain' camp. 

On economic data front, there is not much scheduled for release from the UK. Meanwhile, BoJ's latest monetary policy meeting minutes sounded dovish and increased possibilities of further easing if the need arises. 

Technical outlook

From technical perspective, momentum above 154.00 level is likely to gain traction immediate towards 154.55-60 resistance (50% Fibonacci retracement level of the pair's recent sharp slide from 163.89 to 145.40 - multi-month low level touched in the previous week). A follow through buying interest has the potential to continue boosting the pair further towards 20-day SMA resistance around 155.00 psychological mark, which if conquered sets the stage for extension of the bullish momentum towards 61.8% Fibonacci retracement level resistance near 156.80-157.00 round figure mark.

Conversely, weakness back below 38.2% Fibonacci retracement level support near 152.50 level now seems to drag the pair back towards 150.00 psychological mark support, which if broken might negate bullish expectations and turn the pair vulnerable to head back towards recent closing lows support near 148.00 level, ahead of multi-month lows support near 145.40 region.