GBP/JPY Technical Analysis: Bulls eyeing a test of 200-day SMA ahead of UK PMI

   •  The cross built on this week's goodish rebound from seven-week lows, and previous session's strong upsurge, is now looking to extend the momentum beyond the 147.00 handle.

   •  Against the backdrop of the latest Brexit optimism, the prevalent risk-on mood, which tends to weigh on the JPY's safe-haven status, remained supportive of the positive momentum.

   •  Bullish traders seemed to aim for a test of the very important 200-day SMA resistance, coinciding with 23.6% Fibonacci retracement level of the 139.90-149.72 Aug-Sept upsurge.

   •  Technical indicators on hourly charts have started pointing to slightly overbought conditions but are yet to catch up with the bullish momentum on the daily chart. 

   •  The set-up suggests that any further up-move is more likely to pause near the mentioned confluence hurdle, which if cleared will negate any near-term bearish bias and trigger another squeeze.

GBP/JPY daily chart