GBP/JPY breaks below 153.00 handle, near two-week lows

The GBP/JPY cross faced rejection near the 154.00 handle and has now slipped below the 153.00 handle to near two-week lows. 

The cross extended last week's rejection slide from the 156.00 handle, fresh post-Brexit highs, and has now retreated over 300-pips in less than three trading session. 

An offered tone around the British Pound, primarily led by a goodish pickup in the US Dollar demand, was seen as one of the key factors behind the pair's offered tone at the start of a new trading week. 

Adding to this, reviving safe-haven demand, amid the prevalent cautious sentiment around equity markets, was seen underpinning the Japanese Yen and further collaborated to the pair's fall to its lowest level since Jan. 17. 

Meanwhile, possibilities of some short-term trading stops being triggered, following a decisive break below mid-153.00s, seems to have further aggravated the selling pressure over the past couple of hours or so. 

In absence of any major market moving economic releases, a follow-through weakness, led by additional long-unwinding trade, now seems a distinct possibility.

Technical levels to watch

Immediate support is pegged near the 152.50-30 region, below which the cross is likely to break below the 152.00 handle and head towards its next support near the 151.15 region.

On the upside, any recovery attempts might now confront fresh supply near the 153.40 region and is followed by the 154.00 supply zone, which if cleared could accelerate the up-move towards 154.35-40 hurdle.