GBP/JPY stuck near 146.00 as bulls remain off-balance

• The GBP/JOY remains trapped within a downside channel as Brexit continues to disappoint.
• With data still weak for the mid-week, the Guppy sees risk flows as a major component of direction.

The GBP/JPY is trading flat just shy of 146.00 after cautious market flows saw the Guppy spiral between 146.35 and 145.30 in Tuesday's market action.

The Sterling continues to lose ground against the safe-haven Yen as broader markets turn their backs on the GBP, with Brexit headlines swinging back into the bearish camp as a workable proposal looks even further away than before. UK Prime Minister Theresa May is still trying to force down a half-deal that sees the UK trapped in the EU's customs union well past 2020, a move that is sure to draw further anger from Eurosceptics within the UK's parliament.

Today at 05:00 GMT sees Japan's Leading Economic Index, which last came in at a reading of 104.4, while the GBP sees low-tier Mortgage Approvals at 08:30 GMT, and the Guppy's action will continue to be driven by broader market sentiment and a steady stream of Brexit-focused headlines.

GBP/JPY levels to watch

The Guppy has been trapped in a firm downside wave channel, and although the pair is currently facing support from the 145.50 region, any upside will likely remain capped at the top of the channel, currently sitting near the 147.00 handle.