GBP/JPY surges back closer to yearly tops, above mid-152.00s on Brexit optimism

   •  Brexit optimism continues to underpin the British Pound.
   •  Upbeat UK construction PMI provides an additional boost. 
   •  Risk-on mood supportive of the strong up-move.

After Friday's brief corrective slide, the GBP/JPY cross regained traction and has now jumped back closer to yearly tops touched in September.

Currently trading around the 152.70-75 region, testing session tops, the cross built on last week's strong up-move and got an additional boost from the latest positive Brexit related news. 

The British Pound was further supported by today's upbeat UK construction PMI, coming in at 53.1 as for November as against previous month's reading of 50.8.

Meanwhile, a fresh wave of global risk-on trade, as depicted by strong gains across European equity markets, was also seen weighing on the Japanese Yen's safe-haven appeal and further collaborated to the pair's strong up-move back closer to post-Brexit swing highs.

It would now be interesting to see if bulls are able to maintain their dominant position or opt to take some profits off the table, especially after the recent upsurge of over 550-pips from last week's sub-147.00 level.

Investors now look forward to any fresh news coming out of the highly-anticipated meeting between the UK PM Theresa May and the EU President Jean-Claude Juncker on a Brexit deal.

Technical levels to watch

A follow-through buying interest has the potential to lift the cross towards the 153.00 handle, above which the upward momentum seems more likely to get extended towards 153.60 intermediate level en-route the 154.00 mark.

On the flip side, any meaningful pull-back below 152.25 level is likely to find support near the 152.00 handle, which if broken would turn the cross vulnerable to head back towards retesting the 151.00 round figure mark.