Can GBP/JPY fall even further below

The GBP / JPY currency pair falls for the sixth consecutive week

And with a break below 130.00, as well as support around 128.82, technically there is not much to stop the price from approaching pre-Brexit referendum levels around 121.61.

However, as we are all familiar with the markets, nothing moves in one direction. So let's weigh the current factors that affect movements.

On the pound side, Brexit uncertainty continues to weigh on and threaten the currency.

With that being said, the lack of parliamentary meetings this month is somehow hampering things from getting worse.

On the Yen side, there is plenty that supports the currency. Emerging trade tensions, slowdowns in the global economy, falling government bond yields amid central bank monetary policies, to name a few.

The only positives I can think of in this pair are that the pounds are already starting to lose their strength and it can be a gain in profits, which can be reflected in an upward adjustment.

However, all this should have a limited time effect. For a safer move, we are awaiting development on the Brexit theme. Any Brexit decision - with or without a deal - will have a huge impact on the sentiment of the pound.

In that case, while Brexit without a deal is a viable option, the pound should continue to weaken next month.

Read more:

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• NZD to 0.59 at end of Q1 2020
• Support for risky currencies as trade war hopes grow