GBP/JPY spikes to session tops, back above mid-142.00s

The GBP/JPY cross attracted some fresh buying interest and has now recovered around 100-pips from sub-142.00 level touched in reaction to terrorist attacks in London.

The cross continued gaining traction through mid-European session despite of the disappointing release of UK services PMI, coming-in at a four month low level of 53.8 in May. Meanwhile, the latest ICM UK election poll showed 11-point lead for Conservatives, now at 45% as against Labour party's 34%, has been a key factor driving the GBP crosses higher across the board.

   •  UK: Election is closer than many expected – RBC CM

Moreover, possibilities of some stops getting triggered on a decisive break through mid-142.00s further accelerated the pair's strong up-surge in the past hour or so, to fresh session tops near 142.75-80 region.

Meanwhile, an offered tone around the Japanese Yen, as depicted by a modest recovery staged by the USD/JPY major, also collaborated to the pair's sharp rebound from the vicinity of over one-month lows support near 141.80 region.

   •  UK election to remain in focus this week – BBH

Technical levels to watch

From current levels, the 143.00 round figure mark is likely to act as immediate resistance, above which a fresh bout of short-covering could lift the cross further towards 143.30-35 area ahead of 143.80-144.00 strong hurdle. 

On the downside, 142.30 level now becomes immediate support to defend, which if broken would turn the cross vulnerable to head back towards the 142.00 handle before eventually dropping to mid-141.00s (May 31 low).