GBP/JPY dumped to lows near 139.50 on Brexit jitters

The GBP/USD pair witnessed steep losses earlier on the day, which triggered a sharp sell-off in GBP/JPY, having eroded 100-pips in the cross.

GBP/JPY: Focus shifts to US data

The GBP/JPY pair now sinks -0.60% to 139.55, hovering within a striking distance of daily lows struck previously at 139.42. The GBP bears retain control amid resurgence of ‘Hard-Brexit’ concerns, after the UK Parliament officially paved the way for the UK PM May to trigger Article 50 by this month-end.

Moreover, the pound also suffers from persistent concerns surrounding another Scottish independence referendum announced by the Scottish First Minister Nicola Sturgeon.

However, the downside remains capped on the back of moderate gains seen in USD/JPY, in response to higher treasury yields, as investors shift their focus towards the FOMC decision due tomorrow.

In the meantime, markets await the US inflation figures and UK jobs data due on the cards ahead of tomorrow’s Fed verdict and Yellen’s presser.

GBP/JPY: Technical Levels                                                                                

Higher side: 140.05 (daily pivot/ 20-DMA), 140.50/57 (Mar 10 & 11 high), 140.81/96 (classic R1/ 50-DMA)

Lower side: 139/138.99 (round number/ Mar 9 low), 138.43/38 (classic S3/ Mar 8 low), 138 (zero figure)