GBP/JPY reverses early gains, slides further below 144.00 handle

The GBP/JPY cross failed to hold onto its move back above 144.00 handle and has now dropped to session low, retreating nearly 60-pips from session peak.

Currently trading around 143.65-70 band, the cross initially jumped to 144.20 level after disappointing release of Japanese CPI figures for the month of December. The up-move, however, turned short-lived and the cross ran through fresh offers amid renewed selling pressure around the British Pound. 

With UK markets closed on Tuesday, reemerging 'hard Brexit' worries could be the only factor attributed to the current leg of slide in the British Pound. The cross has even failed to extract any support from slightly upbeat sentiment surrounding European equity markets, with both French and German indices posting modest gains. 

Technical levels to watch

A follow through selling pressure below 143.50 (Friday's low) is likely to accelerate the slide, even below 143.00 handle, towards the very important 200-day SMA support near 142.50 region. On the upside, momentum back above 144.00 handle might continue to face resistance near 144.20-25 region, which if cleared has the potential to lift the cross back towards 145.00 psychological mark.