GBPJPY10112020The cross was last seen trading with modest losses, around the 138.35 region, just below one-month tops set in the previous session. The cross failed to capitalize on the overnight strong rally of over 300 pips and witnessed some selling during the first half of the trading action on Tuesday. The pullback was exclusively sponsored by reviving demand for the safe-haven Japanese yen, though the latest Brexit optimism helped limit any deeper losses for the GBP/JPY cross.

Market euphoria over a promising development in late-stage COVID-19 vaccine trials faded rather quickly amid skepticism about the efficacy and the length of immunity provided. This, in turn, drove investors back towards traditional safe-haven assets, including the Japanese yen, and exerted some pressure on the GBP/JPY cross.