China's Xi helps GBP/JPY find acceptance above 100-day MA

• China's Xi's comments push risk assets higher.
• Anti-risk JPY drops, GBP/JPY finds acceptance above 100-day MA.

GBP/JPY jumped above 100-day moving average (MA) on Monday and clocked a two-month high of 151.49.

However, by the end of the day, the pair had retreated to 150.82, raising concerns the break above the 100-day MA of 105.67 would be short-lived.

But China's President Xi's pro-globalization stance put a bid under the risk assets and helped the GBP/JPY pair find acceptance above the 100-day MA. As of writing, the cross is trading at 151.34, having clocked a session high of 151.49 a few minutes ago.

The pair will likely continue tracking the action in the equities during the day ahead. Also, Bank of England Monetary Policy committee member Haldane's speech, scheduled at 09:30 GMT, could move the Sterling pairs.

GBP/JPY Technical Levels

A clear break above 151.49 (previous day's high) would allow a test of supply around 151.97 (Jan. 30 low) and 152.17 (61.8 percent Fibonacci retracement of the February high - March low). On the other hand, a move below 150.67 (100-day MA) would expose support lined up at 150.00 (psychological support) and 149.58 (50-day MA).