- GBP/JPY witnessed some follow-through selling for the second straight session on Thursday.
- Some GBP profit-taking, reviving safe-haven demand for the JPY contributed to the downtick.
- Investors eagerly await updates on the latest round of Brexit negotiations for some impetus.
The GBP/JPY cross remained depressed through the early European session and was last seen hovering near weekly lows; around the 138.70-65 region.
The cross extended; the previous day's rejection slide from the key; 140.00 mark and witnessed some follow-through; selling for the second consecutive session on Thursday. The downtick was sponsored by a combination of factors–a pullback in the British pound; and reviving safe-haven demand for the Japanese yen.
As investors; await updates on the latest round of Brexit negotiations the post-
FOMC minutes strong USD rebound prompted some long; unwinding trade around the GBP/USD major. This comes amid a turnaround in the global risk sentiment; which benefitted the Japanese yen's; safe-haven status against; its British counterpart.
Thursday's downfall could further be attributed; some technical selling below the 139.00 round-figure mark. A subsequent slide below the 138.60 area (weekly lows) will set the stage for a further near-term depreciating move; possibly towards the 138.00 level en-route the next major support near the 137.80-75 horizontal zone.
In the; absence of any major market-moving; economic releases, the incoming Brexit-related; headlines will play a key role in influencing; the British pound. This; along with the broader market risk sentiment will assist traders to grab some meaningful trading opportunities on Thursday.
GBP/JPY slides further below 139.00 mark, back closer to weekly lows
