GBP/JPY retreats from YTD peaks near 149.00 ahead of Brexit vote

• The cross loses momentum after recording 2019 highs.
• The offered momentum in GBP collaborates with the downside.
• House of Commons expected to pass the extension of Article 50.

The now softer tone around the Sterling is driving GBP/JPY lower after climbing to levels just shy of the 149.00 handle during early trade, or fresh 2019 highs.

GBP/JPY focused on Brexit… what else?

The cross is retracing part of yesterday’s strong advance on the back of renewed selling pressure hitting the risk-associated complex, all after the Trump-Xi meeting has been pushed back to the next month.

In the meantime, the British Pound will be in the centre of the debate later today in light of the upcoming vote at the House of Commons on the most likely extension of the key Article 50.

However, the ongoing decline in yields of the US 10-year note have been weighing on the Japanese Yen, which in turns limits the downside potential in the cross. Furthermore, the cross is so far charting a bullish ‘outside week’, which could morph into further upside in the next sessions.

GBP/JPY key levels

As the moment the cross is losing 0.38% at 147.64 facing the next support at 146.77 (10-day SMA) seconded by 144.69 (200-day SMA) and finally 143.72 (low Mar.11). On the other hand, a break above 148.87 (2019 high Mar.14) would expose 149.48 (monthly high Nov.8 2018) and then 149.71 (2019 high Sep.21 2018).