The Pound-to-Yen exchange rate broke beneath the lower bound of a bearish wedge formation on the charts last week, suggesting that losses will continue during coming days.
The Japanese Yen is undervalued and especially sensitive to shifts in its central bank's monetary policy - or hints of them - which suggests it may rise in the months ahead, says Shanti Keleman, a director and investment adviser at Coutts and Co.
Read more: Japanese Yen is "Undervalued" and Likely to Rise says Queen's Banker, Coutts
The Yen is stronger across foreign exchange markets today after positive wage data and reports the Bank of Japan considered raising rates earlier in the year provided a boost.
Read more: Japanese Yen Rises After Wage data Surprise and BOJ Tightening Rumours Drive Outlook
GBP/JPY has fallen steeply as buyers flock to the safe-haven Yen and the exchange rate could fall further although there are conflicting bullish recovery signs.
Read more: Pound-Yen Outlook: Possible Mini-Recovery After Exhaustion
GBP/JPY falls within descending channel after trendline break and more downside potentially to 142.00 is expected.
Read more: GBP/JPY Outlook: Moving Lower as Pound Depreciates