GBP/JPY having a hard time at the 149.00 handle post-EU-UK preliminary transition deal

• GBP/JPY made a 260-pip run as the EU-UK Brexit trade deal is taking shape.
• The 149.00 handle is a tough multi-month resistance/support level. 

The GBP/JPY is trading at around 148.56 up 0.52% on the day so far as it was with great euphoria that the British Pound investors welcomed the EU-UK preliminary transition deal earlier in the European session, resulting in the GBP/JPY gaining 260 pips after establishing a session low at 147.07 to reach 149.70 in the late European session. 

Indeed, this week is going to be important for the British Pound with UK CPI, average earnings and Bank of England rate decision all lined up ahead of us.

However, no major macro data is expected from Japan. National CPI is expected on Thursday but it usually has a lesser impact than the more popular Tokyo CPI dataset. The Yen is still considered a safe-haven and finds demand on US tariffs´ woes triggering spikes of risk aversion, increased by tensions in the UK-Russia relation and the Japanese political scandal involving no less than the prime minister himself and his minister of finance.  

GBP/JPY daily chart

The GBP/JPY is consolidating between the 23.6% and 38.2% Fibonacci retracement from the February-March downtrend while it is pinched between the 200-period SMA and the 149.00 supply/demand level. 

GBP/JPY 1-hour chart

The Guppy is retreating after its 260-pip advance and has now breached the 38.2% Fibonacci retracement at 148.70 from the last intraday leg higher probably en route towards the 50% Fibonacci retracement at 148.40. Next support level is seen at 148.00-148.05,  the 61.8% Fibonacci retracement and the 100 and 200-period simple moving averages are near-by. The 149.00 level is likely going to be a major resistance as it has been a key supply/resistance zone these last weeks. It seems that the market will now need a fresh catalyst before gathering new strength.