GBP/JPY retreats from over 1-month tops, plummets to 149.00 handle

   •  Broad-based GBP weakness prompts some aggressive selling.
   •  Fading safe-haven demand helps limit any further downside.

The GBP/JPY cross struggled to build on the early up-move to over one-month tops and corrected back to the 149.00 handle in the past hour. 

The British Pound came under some intense selling pressure during the European session on Tuesday and was seen as one of the key factors behind the pair's sharp retreated of around 150-pips from mid-150.00s. 

However, reviving investors' appetite for riskier assets, amid easing fears of a global trade was and as depicted by strong gains across European equity markets, dented the Japanese Yen's safe-haven appeal and helped limit further downside, at least for the time being.

It would now be interesting to see if some dip buying emerges at the lower level or a follow-through long-unwinding pressure keeps exerting downward pressure and drags the cross back towards retesting the very important 200-day SMA.

Technical levels to watch

Weakness below the 149.00 handle is likely to find some support near the 148.75-70 zone, which if broken could accelerate the fall further towards the 148.30-25 region (200-DMA). On the upside, any up-move beyond 149.55-60 area might continue to confront some fresh supply near the key 150.00 psychological mark.