GBP/JPY reverses sharply, back around 154.00 mark

Extending its sharp recovery from multi-month lows, the GBP/JPY cross jumped to 155.70 during early Asian session before retracing sharply to currently trade around 154.00 mark.

Earlier during the day, the British Pound to gained on increasing possibilities of a win for the 'Remain' camp and global risk-on sentiment was seen hurting the safe-haven demand for the Japanese currency, with the GBP/JPY cross surging higher for fifth consecutive day to touch a two-week high level.

On the economic data front, Japanese manufacturing PMI for the month of June remained in contraction territory and also missed consensus forecast and printed 47.8 as compared to 48.2 expected. Weaker PMI number provided little to support Yen's sharp depreciation against the British Pound. 

However, in the past half-an-hour, the pair reversed sharply as investors seem to have turned nervous ahead of the final outcome of the Brexit vote.

Technical levels to watch

On a sustained move back above 155.00 handle, the pair seems more likely to extend the appreciating move further 50-day SMA resistance around 156.55-60 region, with day peak level of 155.70 and 156.00 round figure mark acting as intermediate resistance levels. 

On the downside, failure to hold 154.00 mark support could drag the pair back towards retesting session lows support around 153.50 level. A follow through selling pressure would negate any further bullish expectations and turn the pair vulnerable to resume its previous downward trajectory.