GBP/JPY tumbles to daily lows, around mid-127.00s

• GBP/JPY failed to capitalize on last week’s attempted recovery from multi-year lows.
• The prevailing risk-off mood benefitted the JPY’s safe-haven status against the GBP.
• Technical selling below 128.00 mark further aggravated the intraday bearish pressure.

The GBP/JPY cross extended its steady intraday slide through the mid-European session and refreshed daily lows, around mid-127.00s in the last hour.

The cross failed to capitalize on last week's late attempted recovery move from multi-year lows, rather met with some fresh supply on Monday and extended Friday's intraday rejection slide from the 132.00 round-figure mark.

The prevailing risk-off environment benefitting the Japanese yen's perceived safe-haven status against its British counterpart and was seen as one of the key factors that triggered the initial leg of the downfall on the first day of a new week.

Growing market concerns over the economic fallout from the coronavirus pandemic continued weighing heavily on investors' sentiment and contributed to the ongoing downward spiral in the equity markets across the world.

The cross snapped two consecutive days of a winning streak and was further pressurized by some renewed weakness in the British pound. This coupled with some short-term trading stops being triggered below the 128.00 mark further aggravated the intraday bearish pressure.

The cross has now eroded a major part of the previous day's positive move and some follow-through selling might now set the stage for the resumption of the recent bearish trajectory witnessed over the past one month or so.

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