GBPJPY: Still under pressure amid Brexit uncertainties

• The EU-UK Brexit negotiation in the spotlight as teh European summit on March 22 is set to conclude the trade deal.
• Guppy trading just below its 200-period moving average.

The GBP/JPY is trading flat at around 144.85, just  below its 200-simple moving average as Sterling and Yen both take a benefit of lower US Dollar after the US President Trump voiced trade wars including tariffs introduction.

Although the UK manufacturing output data is scheduled for Friday it seems that the Brexit negotiations are taking center stage when it comes to the Sterling with Theresa May laying out her vision of what the EU-UK relationship should be. 

Earlier on Monday, the UK services PMI came out better than expected at 54.5 as it was expected to rise to 53.3 in February. 

The  key event for Yen is scheduled for Thursday and Friday with the Bank of Japan meeting.  The market participants are awaiting any hints on quantitative easing after Governor Kuroda announced last week he might end stimulus in the fiscal year 2019. 

Technically the Guppy as broken below its 200-simple moving average which can be seen as a bearish configuration. The next significant support is seen at 143.60 which is the 38.2% Fibonacci retracement of the October 2016-February 2017 bull run. Further down support is seen at the 140.00 figure and 50% Fibonacci retracement of the October 2016-February 2017 bull run. To the upside, the next key resistance is seen in the 148.00-148.50 area with the 23.6% Fibonacci retracement and the 200-period simple moving average. Further up the last resistance for bulls is the 156.60 which is the cyclical high. 

GBP/JPY daily chart