GBP/JPY in search of a firm direction, stuck in a range around 138.00 handle

   •  The Japanese Yen remains underpinned despite improving risk-sentiment.
   •  Brexit uncertainties hold GBP bulls from placing aggressive bullish bets.
   •  Focus remains on the upcoming UK parliament debate on May’s Brexit deal.

The GBP/JPY cross seesawed between tepid gains/minor losses and extended its sideways consolidative price action through the mid-European trading session.

The cross struggled to build on Friday's strong follow-through recovery move from 14-month lows set in the previous session and remained confined within a broader trading range around the 138.00 handle.

Despite improving risk appetite, concerns over a sharp global economic slowdown continued underpinning the Japanese Yen's safe-haven demand and turned out to be one of the key factors capping gains.

Meanwhile, the GBP bulls now held back from placing any aggressive bids ahead of the upcoming UK Parliament debate on the PM May's Brexit deal, set to resume this Wednesday, and the meaningful vote next week. 

Adding to this, absent relevant market moving economic releases from the UK also failed to provide any meaningful impetus and further collaborated to the pair's lacklustre/subdued price action on the first trading day of the week. 

Hence, it would be prudent to wait for a strong follow-through buying before confirming that the cross might have actually bottomed out and traders start positioning for any further near-term appreciating move. 

Technical levels to watch