GBP/JPY jumps over 150-pips from 1-month lows, retakes 148.00 mark and beyond

The GBP/JPY cross recovered over 150-pips from sub-147.00 level, near one-month low touched earlier, and is currently placed at fresh session tops, in the region of mid-148.00s.

A strong bid tone surrounding the British Pound, further supported by an upward revision of the UK's Q2 unit labor costs, now standing at 2.4% from the previous estimate of 1.6%, helped the cross to stage a goodish recovery move from its lowest level since mid-September. 

   •  UK’s ONS corrects Q2 unit labor costs to 2.4% y/y from 1.6% previous estimate

Meanwhile, the market seems to have digested the latest news reports that N. Korea is preparing to test a long-range missile. Hence, fading safe-haven demand further dented the Japanese Yen's safe-haven appeal and collaborated to the pair's strong up-move at the beginning of a new week. 

With investors looking past the latest UK political turmoil, focus shifts to the UK PM Theresa May's address to Parliament, scheduled at 14.30GMT, which would now be looked upon for fresh bullish impetus for the British Pound. 

   •  UK: Poor speech from PM May - BBH

Technical levels to watch

A follow through buying interest has the potential to continue boosting the cross even beyond the 149.00 handle towards its next hurdle near the 149.30 region. On the downside, the 148.00 mark now becomes immediate support to defend, which if broken would turn the cross vulnerable to head back towards retesting the 147.00 handle with some intermediate support near the 147.65-60 region.