The pound moved off daily lows but it is consolidating losses across the board. The currency still remains under pressure ahead of the key speech from PM Theresa May that will be delivered on Tuesday, about Brexit. 

GBP/JPY bottomed at 136.45, the lowest level since November 21 and then bounced to the upside, rising to 138.15. During the last hours, it has been moving in a range between 137.35 and 137.80, around 200 pips below Friday’s closing price. Since the beginning of the year, it has fallen more than 600 pips. 

Risk aversion and a fears about a hard Brexit continue to weight on the pair that on Monday is about to post the lowest daily close in almost two months. 

Levels to watch 

GBP/JPY is consolidating under the important area of 138.50/60, that could signal further pressure ahead. The immediate relevant support could be seen around 135.90, where the 100-day moving average stands, followed by 132.20/30 (Oct 2016 highs). On the opposite direction, resistance now might lie at 138.50, 138.80/85 (last week low) and 140.55/60 (Jan 13 high).