GBP/JPY catches some lift to challenge the 150.00 handle

• The GBP/JPY lifted in Tuesday's action, driven by a broad-market Yen sell-off as risk flows reverse direction.
• Little is scheduled for the macro calendar, and risk sentiment will be the driver.

The GBP/JPY is holding near Tuesday's high after climbing steadily through the day, and the pair is sitting near 149.80 heading into the Tokyo market session.

The Sterling lifted against the Yen yesterday after risk flights reversed their flows as traders recovered from the early week's bout of risk aversion on geopolitical tensions between the US and China continue to escalate. China announced a raft of tariffs on US goods in retaliation for steel and aluminum duties placed on foreign metals by the US previously, and the US' recent announcement of further tariffs on Chinese goods will have traders waiting to see China's next move.

The calendar is a quiet affair for the Sterling on Tuesday with only the UK's March figures for Construction PMIs, due at 08:30 GMT and expected to print a contracted 50.8 versus the previous 51.4. Japan will be seeing Foreign Investment in Stocks and Bonds late in the day at 23:50, but these figures are low-tier and unlikely to have much impact as traders continue to focus on broader market sentiment.

GBP/JPY Levels to watch

With the pair's action safely back near March's highs, bulls will be looking to make a clean break above the 150.00 handle to challenge further resistance at March's high point of 150.60, while bears could be planning to step in and price out a reversal from Tuesday's high, which would see the GBP/JPY fall from just beneath the 150.00 mark and head into support at the 200-day SMA near 148.50 with a further decline into March's last swing low at 147.70.