The GBP/JPY cross was seen building on to last week's rebound from the very important 200-day SMA, albeit remained below yesterday's swing high beyond 145.00 handle.

Currently trading around 144.60 region, the cross caught fresh bids on Wednesday amid prevalent risk-on mood, which tends to weigh on traditional safe-haven assets - the Japanese Yen. Adding to this, a goodish recovery staged by the GBP/USD major, after yesterday's slide back to 1.2200 important support, is further contributing to the pair's up-move on Wednesday. 

Looking at the broader picture, the cross halted its corrective slide, from nearly 6-month highs touched in December, at the very important 200-day SMA support. The pair's ability to hold and rebound from an important support seems to reinforce the well-established near-term bullish trend and hence, increases possibilities of further appreciating move even from current levels. 

Today's UK economic docket, featuring the release of UK construction PMI for December, which if adds to yesterday's strong manufacturing PMI report would attract a follow through buying interest around the British Pound and eventually provide fresh bullish impetus for the GBP/JPY cross. 

Technical levels to watch

From current levels, momentum above 145.00 psychological mark, leading to a subsequent strength above 145.40 level (yesterday's high), is likely to lift the cross beyond 146.00 handle towards 146.35 resistance area (Dec. 20 high). On the downside, 144.00 handle now become immediate support to defend, which if broken could accelerate the slide back towards 143.00 round figure mark, with 143.55-50 region (yesterday's low) acting as intermediate support.