GBP/JPY clings to gains just below session tops, around mid-133.00s

• GBP/JPY regains traction amid some buying around the British pound.
• Fading safe-haven demand weighed on the JPY and remains supportive.

The GBP/JPY cross edged higher through the mid-European session and refreshed session tops in the last hour, around the 133.85-90 region, albeit quickly retreated few pips thereafter.

The cross caught some fresh bids on Thursday, snapping three consecutive days of losing streak and reversed the previous day's negative move to weekly lows amid some buying interest around the British pound.

Despite the fact that Fitch recently lowered its UK long-term issuer default rating, the GBP bulls have been showing some resilience and also seemed rather unaffected by concerns over the economic fallout from the coronavirus pandemic.

On the other hand, a slight improvement in the global risk sentiment, as depicted by a positive move around the equity markets, undermined the Japanese yen's safe-haven demand and remained supportive of the pair's intraday positive move.

It, however, remains to be seen if bulls are able to capitalize on the positive move or the cross once again meets with some fresh supply at higher levels as the focus remains on developments surrounding the coronavirus saga.

Technical levels to watch