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  • GBP/JPY witnessed some heavy selling for the third consecutive session on Wednesday.
  • Growing fears of a no-deal Brexit undermined the British pound and exerted pressure.
  • Bulls seemed rather unimpressed by fading safe-haven demand for the Japanese yen.

The GBP/JPY pair maintained its offered tone through the mid-European session and was last seen trading near just below the 137.00 mark, or six-week lows.

Worries about Brexit trade negotiations continued undermining sentiment surrounding the British pound, which lost some additional ground after the UK set out its blueprint for life outside the European Union. Reuters, citing a copy of the UK internal market bill, reported the legislation acknowledged that some powers conferred by it may be inconsistent with international law.

Responding to the latest development, the European Commission Vice President of interinstitutional relations and foresight, Maroš Šefčovič said it was already clear that Brexit withdrawal agreement is not open for renegotiation. European lawmakers are expected to express their dissatisfaction on the UK legislation, which might exert some additional pressure on the already weaker sterling.

On the other hand, a positive tone around the equity markets dented the Japanese yen’s perceived safe-haven status against its British counterpart. Fading safe-haven demand, however, did little to impress bullish traders or extend any support to the GBP/JPY cross.

Moving ahead, market participants now look forward to the UK Prime Minister Boris Johnson’s press conference at 15:00 GMT, which will further influence the GBP price dynamics and produce some meaningful trading opportunities.

Technical levels to watch