GBP/JPY fast approaching 130.00 psychological mark

The GBP/JPY cross is seen building on to its three consecutive weeks of losses and is now moving closer to 130.00 psychological mark. 

The pair's initial attempted recovery to 131.00 region ran through fresh selling pressure amid broad based selling pressure surrounding the British Pound on news of a further delay to invoke Article 50, which further fueled to the uncertainty surrounding the historic Brexit referendum.

Meanwhile, Yen shrugged-off weaker-than-expected Japanese GDP print for second-quarter of 2016 and maintained its bid tone amid think liquidity conditions, adding on to the selling pressure surrounding the GBP/JPY cross. 

Next in focus would be a slew of macro releases from the UK, slated for release during the course of current trading week, including - CPI print, employment details and retail sales data, that would provide fresh impetus for GBP traders and drive the GBP/JPY cross further in the near-term.

Technical levels to watch

From current levels, bulls would look to defend 130.00 psychological mark, which if broken decisively is likely to trigger a fresh leg of weakness for the pair and continue dragging the pair further towards its next major support near 128.00 round figure mark with 129.00 round figure mark acting as intermediate support.

On the flip side, any attempts of recovery might now confront immediate resistance near 130.65-70 region. Momentum above this immediate resistance, leading to a subsequent strength above 131.00 region, seems to trigger a near-term short-covering rally towards 132.00 strong resistance.