GBP/JPY takes out 4-hour 200-MA, peeps above 143.00

GBP/JPY took out the 4-hour 200-MA hurdle in early Asia, and is now exploring levels above the 143.00 handle. 

At press time, the cross traded at the session high of 143.20. The 38.2% Fib retracement of the July 11 high and Aug 24 low - 142.54 served as a strong support level in early Asia. 

The gains seen today as largely a product of the uptick in the USD/JPY. The Japanese Yen is down across the board as investors are being forced to ditch the Yen shorts initiated on Friday on fears that North Korea may fire another missile, leading to a military conflict in the Korean Peninsula. 

No North Korea action over the weekend has offered some relief, although it could be short lived as North Korea warned of a punitive action if US pursues oil sanctions. Thus, things could easily heat up again. 

With no major data due for release across Europe and in the US, the cross is at the mercy of the broader market sentiment. 

Read - GBP/JPY risk reversals: Bear trap?

GBP/JPY Technical Levels

A break above 143.34 [May 18 low] would open doors for 143.72 [100-DMA] and 143.79 [50-DMA]. On the other hand, a break below 143.00 [Sep 1 high] could yield a sell-off to 142.41 [200-DMA] and 142.25 [10-DMA].