GBP/JPY corrects farther from yearly tops, around 151.00 mark ahead of UK PMI
• Brexit-talks breakdown continues to weigh on GBP.
• Fading safe-haven demand fails to lend any support.
• UK services PMI eyed for some trading impetus.
The GBP/JPY cross extended overnight sharp retracement from fresh yearly tops and remained under some selling pressure through the early European session on Tuesday.
The cross, on Monday, once again faced rejection just ahead of the 153.00 handle after the UK and EU failed to reach a Brexit deal, triggering a brief selloff in the British Pound. The long-unwinding pressure continued on Tuesday, dragging the cross back closer to the 151.00 round figure mark in the past hour.
Against the backdrop of Brexit-talk breakdown, fading safe-haven demand, which tends to weigh on the Japanese Yen, did little to lend any support and stall the pair's corrective slide.
With the incoming Brexit headlines overshadowing mostly upbeat UK economic data, including Monday's construction PMI print, investors now look forward to the release of UK services PMI for some short-term trading impetus.
Technical levels to watch
A follow-through weakness below the 151.00 handle is likely to get extended towards 150.55-50 intermediate support en-route the key 150.00 psychological mark.
On the upside, mid-151.00s now seems to act as immediate resistance, above which the pair could move back above the 152.00 handle towards retesting 152.25-30 supply zone.