GBP/JPY: back to neutral after big sell-off, 'NO-Brexit-deal' BBC headline

• GBP/JPY back to neutral within wide Brexit risk range.
• GBP/JPY supported by MA clusters in the daily sideways channel. 

GBP/JPY has settled down after a round trip between the starting point of Monday's business in the 151.50's to a daily high of  152.96 before the no Brexit deal (yet) news that smashed cable to smithereens and sent the cross of a cliff down to a 151.24 low for the NY session so far.  Currently, GBP/JPY is trading at 151.84, up 0.54% on the day.

The price of GBPUSD made a new session low at 1.3411 when the BBC reported that they are not expecting a deal to be made from today's luncheon meeting between PM May and EU's Juncker ahead of the December 15th summit. 

However, the pound bounced back just ahead and during the joint statement made between Mrs May and Mr Juncker where both delivered optimistic announcements:

• No agreement between UK, EU following Juncker & May meeting – Reuters.
• British PM May: Confident will have a positive conclusion.

Japanese yen's safe haven bid diminished start of week 

The JPY is down 0.62% vs. the USD at the time of writing, and underperforming most of the G10 currencies on the back of renewed risk appetite and in the absence of any meaningful domestic releases from Japan, except for the final Q3 GDP and labor cash earnings, eyes will remain on political developments in Washington, (Flynn and tax reform related).

Elsewhere, however, analysts at Scotiabank noted that the comments from BoJ Gov. Kuroda have underscored the need to maintain a considerable amount of policy accommodation. "Kuroda championed the BoJ’s yield curve control policy and pushed back on interpretations of recent policy commentary," the analysts at Scotiabank explained.

GBP/JPY levels

GBP/JPY dropped below the merging bullish 10, 21 and 50-hourly SMAs and spot rebounded from 151.20 support area back into a bullish position and bullish opening gap's space. Further support comes from the 4-hr bullish 21-SMA located at 151.47 and 2nd Nov highs at 151.52. The daily outlook is neutral with indicators at their midlines while 152.86 remains the daily high, 20th Sep. 146.90 is where the 100-d SMA is located below the sideways channel's support at 147.75.