GBP/JPY stuck cycling in the 138.00 zone as market sentiment awaits trade talks

• Guppy trading into the high end as market sentiment builds on trade talks hope.
• Brexit remains a key cloud over the Sterling, pending the UK’s next parliamentary vote on agreement.

GBP/JPY has stabilized near 138.50, trading in the middle heading into the mid-week as market sentiment hangs in the balance.

Broader markets are awaiting results and announcements from US-China vice-minister-level trade talks, which are extending into a third straight day this week, as investors pin their hopes on improved trade conditions between the two countries to help blow off some of the current pressure built into market sentiment thanks to trade war rhetoric.

Brexit continues to hang off of the Sterling like a dead weight, but divorce proceedings have ground to a standstill pending a parliamentary vote for the UK’s current divorce bill, but broader risk appetite remains on the upside, sending the GBP steadily higher against the safe haven Yen in the run-up to results from major trade talks.

GBP/JPY Technical Levels