GBP/JPY refreshes 2018 lows and rebounds, sill in red around mid-151.00s

   •  Disappointing UK economic data triggers the initial leg of fall.
   •  Risk-off mood provides an additional boost to JPY’s safe-haven appeal.
   •  Barnier’s Brexit comments add to the downward pressure. 

Having posted a session high near the 152.75 region, the GBP/JPY cross turned sharply lower and tumbled to fresh 2018 lows in the last hour.

Today's disappointing UK economic data triggered the initial leg of downslide from session tops and dragged the cross into negative territory for the third consecutive session. 

The selling pressure aggravated further in wake of another round of selloff across European equity markets, which was seen benefitting the Japanese Yen's safe-haven appeal.

Meanwhile, some fresh comments on the Brexit transition period by the EU's chief Brexit negotiator Michel Barnier further dented the already weaker sentiment surrounding the British Pound and collaborated to the pair's downfall to the key 150.00 psychological mark.

The selling pressure, however, seems to have abated, at least for the time being, and the cross quickly recovering around 40-pips from lows. The recovery lacked any obvious catalyst and could be solely attributed to some short-covering move, especially after the pair's recent slump of over 650-pips in the last six trading sessions.

Technical levels to watch

A clear break below the 150.00 handle is likely to accelerate the fall towards 149.45-40 horizontal support en-route the 149.00 handle and 148.70-65 support. On the upside, any meaningful recovery is likely to confront fresh supply near the 151.00 handle, above which the cross could head back towards 151.7075 supply zone en-route the 152.00 round figure mark.