GBP/JPY rallies to 136.00 mark, will it sustain?

• The GBP picks up the pace in reaction to mostly in line/stronger UK macro data.
• No-deal Brexit fears/dovish BoE expectations might cap any strong follow-through.

The British Pound gained some positive traction post-UK macro releases, lifting the GBP/JPY cross to fresh session tops near the 136.00 round figure mark.

Data released on Wednesday showed that the UK economic growth stood at 0.3% in May and trade deficit unexpectedly shrank to £11.542 billion in May as compared to an upwardly revised figure of £12.761 recorded in the previous month.

Adding to this, the UK industrial and manufacturing production staged a solid rebound in May - though missed consensus estimates by a narrow margin, and provided an additional boost, helping the cross to recover a major part of the overnight downfall. 

With the GBP price dynamics turning out to be an exclusive driver of the pair's momentum, the prevalent cautions mood around equity markets - which tends to underpin the Japanese Yen's safe-haven demand, did little to hinder the positive move.

It, however, remains to be seen if the cross is able to capitalize on the move or bears come back in action at higher levels amid persistent fears of a no-deal Brexit and speculations that the BoE will soon join other major central banks in easing monetary policy.

Technical levels to watch