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  • The GBP/JPY cross failed to capitalize on the recent recovery move beyond the key 1.3000 psychological mark and witnessed some aggressive selling during the early European session on Wednesday.
  • News that the UK government has already initiated plans to delay parliamentary proceedings for about five weeks revived fears of a no-deal Brexit and exerted some heavy downward pressure on the GBP.

Given that the cross on Monday broke below a short-term ascending trend-channel – forming a part of a bearish continuation flag chart pattern – the near-term set-up remains tilted in favour of bearish traders and support prospects for the resumption of the near-term depreciating move.
With technical indicators on the daily chart still holding in the bearish territory, sustained weakness below the overnight swing lows – around the 129.00 round figure mark – further reinforces the bearish set-up amid persistent Brexit-related uncertainties and reviving safe-haven demand.
The cross now seems vulnerable to head back towards testing weekly lows support near the 128.20-128.00 region before eventually dropping to test the 127.60-50 intermediate support, the 127.00 round figure mark en-route multi-year lows support near the 126.55 region.
On the flip side, any attempted recovery beyond the 129.00 handle now seems to confront some fresh supply near the 129.25 region, which if cleared might trigger a short-covering move and assist the cross to make a fresh attempt towards conquering the 1.30 round figure mark.

GBP/JPY 4-hourly chart