GBP/JPY tumbles to lows, farther below 140.00 handle

The GBP/JPY cross failed to build on early tepid recovery move and has now dropped to fresh session low below the key 140.00 psychological mark. 

Spot retreated sharply from 141.00 neighborhood amid fresh wave of selling pressure around the British Pound. Friday's disastrous UK election result now seems to have revived worries over negotiations on Britain's exit from the European Union and continued weighing on the British Pound. 

   •  Moody’s: UK election outcome will probably delay Brexit deal, a credit negative

This coupled with a fresh wave of global risk-aversion trade, as depicted by negative trading sentiment around global equity markets, further benefitted the Japanese Yen's safe-haven appeal and collaborated to the pair's fall to session lows near 139.70 region.

In absence of any major market moving economic releases, a follow through selling pressure below 7-week lows touched on Friday remains a distinct possibility amid prevalent risk-off environment.

Technical levels to watch

Bears would eyeing for a break through Friday's swing lows support near mid-139.00s, below which the cross is likely to accelerate the slide towards 139.00-138.90 support area before eventually dropping to its next support near 138.20-15 region.

On the upside, any recovery move back above the 140.00 handle might now confront strong resistance near 140.55 level, above which the cross is likely to aim towards reclaiming the 141.00 handle.