GBP/JPY clings to gains near session tops, around 152.25-30 region

• GBP/JPY regained some positive traction on the first day of a new trading week.
• The risk-on mood undermined the safe-haven JPY and extended some support.
• Stronger USD weighed on the British pound and might cap any meaningful upside.

The GBP/JPY cross traded with a mild positive bias through the first half of the European session and was last seen hovering near daily tops, around the 152.25-30 region.

Following Friday's sharp pullback of around 65 pips from near one-month tops, the GBP/JPY cross caught some fresh bids on the first day of a new trading week amid the prevalent risk-on environment. Despite worries about the fast-spreading Delta variant and a global economic slowdown, the underlying bullish tone in the financial markets undermined the safe-haven Japanese yen. This, in turn, was seen as a key factor that acted as a tailwind for the cross.

That said, a broad-based US dollar strength weighed on the British pound and failed to impress bullish traders, or provide any meaningful impetus to the GBP/JPY cross. Nevertheless, the cross, so far, has managed to hold in the positive territory for the second successive day. In the absence of any major market-moving economic releases, the broader market risk sentiment will continue to play a key role in influencing the pair's intraday momentum.

From a technical perspective, Friday's sustained move beyond the 152.10-15 region marked a near-term bullish breakout through a flag pattern on short-term charts. The emergence of some dip-buying near the mentioned resistance breakpoint now turned support, adds credence to the constructive outlook. Hence, some follow-through strength beyond the 152.60-65 intermediate hurdle, towards reclaiming the 153.00 mark, remains a distinct possibility.