GBP/JPY plummets below 143.00 handle to fresh monthly lows
|After a brief pause near the 143.00 handle, and a subsequent rebound to mid-143.00s during early European session, the GBP/JPY cross came under some fresh selling pressure and tumbled to fresh one-month lows.
Currently trading around mid-142.00s, spot remained heavily offered through European session amid persistent GBP selling interest. Thursday's dismal UK GDP numbers further collaborated to the already weaker sentiment surrounding the British Pound, led by renewed concerns of a possible 'hard Brexit' scenario and a deadly terrorist attack during early part of the week.
• UK: A lot to watch out before the polls – Westpac
Also collaborating to Friday's sharp downslide was strong Yen demand, underpinned by today's upbeat Japanese inflation figures and the prevalent risk-off environment to drives flows towards traditional safe-haven assets.
• Japan: CPI surged to 0.4% from 0.2%, rising as expected - BBH
Meanwhile, possibilities of some big stops being triggered, on a decisive break below the 143.00 handle, seems have further aggravated the selling pressure over the past few hours and dragged the cross to its lowest level since April 26.
There are no macroeconomic releases due from the UK and hence, broader market risk-sentiment now seems to act as an exclusive driver of the pair's movement through rest of the trading session on Friday.
Technical levels to watch
A follow through weakness below 142.45-40 area, the cross is likely to accelerate the slide towards the 142.00 handle en-route 141.80-75 horizontal support. On the upside, the 143.00 handle now becomes immediate strong resistance, above which a bout of short-covering could lift the cross back towards 143.65 previous support, now turned resistance.
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