GBP/JPY refreshes session tops after UK PMI and retreats

The GBP/JPY cross reversed an early dip the 149.00 handle, lowest level since mid-Sept., and refreshed session tops after better-than-expected UK data.

The cross spiked to 149.56 level after the latest UK services PMI bettered expectations and came in at 53.6 for September. Today's upbeat reading eased concerns of a sharp economic slowdown, especially after this week's dismal manufacturing and construction PMI prints.

However, a heavily offered tone surrounding the USD/JPY major, despite the latest political developments in Japan, coupled with uncertainty over the ongoing Brexit talks kept a lid on any further up-move, with the cross retreating over 20-pips from post-data swing highs. 

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Against the backdrop of prevalent risk-on environment, as depicted by positive trading sentiment around European equity markets and which tends to weigh on the Japanese Yen's safe-haven appeal, the cross seems more likely to defend 2-1/2 week lows support near the 149.00 round figure mark.

Technical levels to watch

Bears would be eyeing for a decisive break through the 149.00 region, below which the cross is likely to accelerate the corrective slide towards 148.40 intermediate support en-route the 148.00 handle.

On the upside, 149.55-60 area might continue to act as immediate resistance, which if cleared should lift the cross back towards the key 150.00 psychological mark ahead of its next major hurdle near the 150.40-45 region.