GBP/JPY holds stable near 6-week tops, around mid-150.00s

   •  Struggles to build on this week’s rebound from the very important 200-day SMA.
   • A combination of diverging forces failed to provide any fresh bullish impetus. 
   •  Dip buying interest below 150.00 handle helps limit immediate downside.

The GBP/JPY cross extended its consolidative price action through the early European session on Friday and has held within striking distance of 6-week tops.

The cross built on this week's rebound from the very important 200-day SMA support and seemed finding some dip buying interest below the key 150 psychological mark, albeit remained confined within a 70-pips broader trading range. 

A combination of diverging forces have failed to provide any fresh impetus and led to a range-bound/subdued action over the past two trading session. The incoming disappointing UK economic data - construction and services PMI released on Wednesday and Thursday respectively, has been weighing on the British Pound and capping any further up-move.

However, an offered tone around the Japanese Yen, despite a fresh wave of global risk-aversion trade, helped limit any immediate sharp downside, eventually leading to a subdued/range-bounce price-action since the second half of this week. 

Hence, it would prudent to wait for a decisive break in either direction before positioning for the pair's next leg of direction. In absence of any major market moving economic releases, the keenly watched US NFP report might infuse some volatility in the FX market and provide some impetus later during the early NA session.

Technical levels to watch

The 150.65-70 region might continue to act as an immediate resistance, above which the cross is likely to surpass the 151.00 handle and head towards testing its next hurdle near the 151.60 area. 

On the flip side, 149.90-85 zone now seems to have emerged as an immediate support, which if broken could prompt some fresh long-unwinding trade and drag the cross back towards the 149.00 handle.