GBP/JPY pushes back into 145.00 as Yen steps back

• Sterling clambers up as Yen capitulates on JGB purchasing cut.
• Risk appetite remains limited, GBP bulls to end the week cautious.

The Sterling is back to flat against the Yen ahead of the European market session, trading near 144.75.

The GBP/JPY spiked higher in the Asia session after the Bank of Japan (BoJ) cut there purchases of 5-10 year maturity Japanese bonds, forcing the Yen down across the board, albeit briefly. The Sterling lifted to 145.05 against the Yen before bedding back down near where Friday started.

The upcoming London window sees only Markit Manufacturing PMIs for May (forecast 53.5, prev. 53.9) on the docket at 08:30 GMT.

GBP/JPY levels to watch

With the pair extending a bullish correction from yesterday's low near 144.15, near-term resistance can be found at Friday's current high of 145.05, with Thursday's high of 145.30 resting just beyond that, while a bearish continuation will see further support from May's low near 143.20.