GBP/JPY bears break below 138 handle, playing catch up with Sterling's weakness

Currently, GBP/JPY is trading at 137.64, down -0.54% on the day, having posted a daily high at 138.52 and low at 137.60.

Forex today: improved risk sentiment across the board, GBP/USD worst performer

Sterling crosses are taking a beating with GBP/JPY playing catch-up with the rest of the cross's bears first out of the blocks - that would be GBP/AUD. However, cable is now testing critical support levels on this move.

 UK PM May signs Article 50 letter

The UK PM Theresa May has already signed the letter and the British ambassador, Sir Tim Barrow, is due to deliver it to EU's Donald Tusk around 12GMT. Tusk holds a press conference announcing that the negotiations will formally begin in the process of separating Britain from the European Union. 

Meanwhile, USD/JPY is holding up in Tokyo after stops triggered a decent score on the 111 handle to 111.20 highs overnight with Wal Street on the march. Risk-on aided a recovery in the major unit that may slow down the crosses decline should bull's remain in control - hence GBP/JPY bears were last out of the blocks on this move in sterling just before the open. 

Article 50 to be triggered: "So what now?" - Westpac

GBP/JPY levels

GBP/JPY is now posting the lowest levels since Jan 16 earlier this year is reversing 86% of January's rally from 136.44 to 144.72. The cross is well below the 2017 support line at 138.50. On a correction, the 20-d sma is located at 138.63 to place the cross back into neutral territory. 

USDJPY: Selling rallies towards 111.70