GBP/JPY building on to its move back above 128.00 handle

Having posted a session low near mid-127.00s, the GBP/JPY cross managed to recover its lost ground and has now moved back above 128.00 handle. 

Currently trading at a fresh session high level near 128.30 region, a tepid recovery bounce in the GBP/USD major, following Friday's flash crash, triggered the initial leg of recovery momentum for the cross. Adding to this, upbeat investor sentiment around European equity markets, with German DAX up 0.50% while London's FTSE 100 and France's CAC 40 up around 0.20%,  is denting the safe-haven appeal of the Japanese Yen and providing additional support to the cross. 

In absence of any major market-moving economic releases, the prevalent market risk sentiment and any fresh Brexit related news would be key determinants for the pair's next leg of move from current levels.

Technical levels to watch

A follow through buying interest from current levels, has the potential to continue boosting the cross further towards 129.00 handle above which the pair seems all set to extend its recovery trend towards reclaiming 130.00 psychological mark.

On the flip side, renewed weakness below 127.85 support, leading to a break below session low support near 127.50 area, is likely to accelerate the slide immediately towards 126.80 strong support before the cross eventually extends its near-term downward trajectory towards Friday's swing low support near 122.75 level.