GBP/JPY Technical Analysis: Set up points to an extension of the bearish trend

   •  After filling the weekly bearish gap, the cross met with some fresh supply near the very important 200-day SMA and tumbled to over one-week lows in the last hour. 

   •  A combination of negative factors - renewed Brexit uncertainties and reviving safe-haven demand, prompted some aggressive selling at the start of a new trading week. 

   •  A sustained break below the 147.00-90 region, marking 38.2% Fibonacci retracement level of the 142.77-149.49 recent upsurge was seen as a key trigger for the bearish traders.

   •  Technical indicators on hourly charts have drifted into oversold conditions and thus, warrant some intraday consolidation before the next leg of near-term downfall. 

   •  However, indicators on the daily chart have started gaining negative momentum and hence, any attempted recovery seems more likely to run into some fresh supply at higher levels.
 

GBP/JPY 1-hourly chart