GBP/JPY falls for third consecutive day, UK PMI in focus

With a loss over 650-pips from weekly high level of 163.90 and third consecutive day of declines, it is turning out to be a bad week for the GBP/JPY cross.

Currently the pair is trading at 157.40; down 45-pips from Wednesday's close, as the EU referendum moves closer and the lead now seem to lean towards the 'Leave' camp. Moreover, global risk aversion further seems to support demand for the Japanese Yen and putting additional pressure on the GBP/JPY cross. 

Traders now look forward to today's UK construction PMI report for some intra-day moves but 'Brexit' worries might continue to keep the British Pound suppressed thus limiting the prospects of any swift recovery for the GBP/JPY cross.

Technical levels to watch

From current levels, 157.00-156.80 area seems to offer immediate support, below which the cross seems to extend its downward trajectory towards 155.75-70 horizontal support. On a sustained break below 155.75-70 support, the pair turns vulnerable to continue drifting lower and drop below 155.00 handle to test 154.30-25 support area.

Meanwhile on the upside, 158.00 round figure mark is likely to act as immediate hurdle, which if cleared seems to assist the pair towards 158.70 intermediate horizontal resistance ahead of the key psychological mark resistance near 160.00 level.