GBP/JPY heads for the lowest close since November 2016

• Weaker pound across the board sends GBP/JPY further to the downside. 
• Pound hit by increasing concerns about UK economy and Brexit worries. 

The GBP/JPY pair broke a 8-day trading range to the downside, and reached the lowest intraday level since early January. It bottomed at 134.94 and as of writing, is hovering around 135.00, about to post the lowest close in more than 2 year. 

The pound was the worst performer among majors on Monday. After a quiet Asian session it turned to the downside and then dropped constantly. The decline was even more pronounced versus commodity and emerging market currencies. 

The yen posted mixed results. It gained on the back of lower US yields but some improvement in risk appetite, mostly during the European session, kept gains limited. 

The GBP/JPY lost 70 pips on Monday, breaking a range and left the doors open to more losses. A recovery back above 135.50 would remove the short-term bearish pressure. 

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