GBP/JPY dragging back into 139.00 after Brexit vote recovery bounce

• Flip-flopping market sentiment sending GBP/JPY back down to 139.00.
• With the Brexit vote in the rearview mirror, focus continues to drift towards sinking market sentiment.

GBP/JPY is trading into the low end once more, dipping back towards the 139.00 major level Tuesday's rough ride saw the pair mark in a low near 137.30 and a high above 140.40 on the back of the UK's key Brexit vote, but market sentiment is continuing to sour and send the majority of Yen pairs back down once again.

Market tensions saw the Guppy decline steadily on Tuesday in the run-up to the UK's parliamentary vote on PM May's Brexit withdrawal agreement, and after May's deal met a resounding defeat as was largely expected, the GBP rallied quickly, recovering to the 140.00 major handle, but early Wednesday action is seeing GBP/JPY take another step lower into 139.00 as market sentiment sinks in the Pacific theater. Japanese Machinery Orders for November tumbled to 0.0% (forecast 3.5%, last 7.6%), and now that nobody really knows what will happen with Brexit next, the GBP is giving up ground for the new trading day, with plenty of action on the economic calendar for Wednesday.

The Bank of England's Mark Carney will be delivering a speech at 09:15 GMT, followed closely by December's CPI readings for December at 09:30, and markets are expecting inflation to tick down to 2.1% from 2.3%.

GBP/JPY Technical Levels