GBP/JPY making a fresh attempt to break through 140.00 handle

The GBP/JPY cross gained some fresh traction and has now move past the key 140.00 psychological mark. 

Spot extended its recovery move from Monday's yearly low near mid-135.00s and jumped to fresh monthly tops, against the backdrop of previous session's strong up-surge in wake of the UK PM Theresa May's announcement for an early election. 

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Meanwhile, a slight improvement in investors' risk appetite, as depicted by mildly positive trading sentiment surrounding the European equity markets, is weighing on the Japanese Yen's safe-haven appeal. With the GBP/USD major consolidating Tuesday's strong up-surge to the highest level since early October 2016, an offered tone around the Japanese Yen has been a key driver of the pair's up-move for the third consecutive session.

   •  Risk sentiment mainly guided by the political developments – Lloyds Bank

It, however, remains to be seen if the cross is able to build on the ongoing momentum and break 140.60-70 strong horizontal hurdle held since early March. Nevertheless, the cross still seems all set for its highest daily close since mid-March.

Technical levels to watch

Immediate resistance is seen near 140.35 level and is followed by a strong hurdle near 140.60-70 zone. A convincing break through this important barrier should easily lift the cross beyond the 141.00 handle towards its next resistance near 141.45-50 region.

On the downside, retracement back below 139.75 level could get extended towards 139.40 level, below which a bout of profit taking could drag the pair below the 139.00 handle towards 138.85 level.