The Japanese Yen continued gaining traction across the board, dragging the GBP/JPY cross to yearly lows near mid-136.00s.
Rising geopolitical tensions surrounding the Korean peninsula and Syria continue to drive flows towards traditional safe-haven assets, including the yen, and has been a key factor driving the cross lower to its lowest level since mid-Jan.
Adding to this, a slightly softer tone surrounding the GBP/USD major further collaborated to the pair's downslide further below the very important 200-day SMA support, breached on Tuesday.
With broader market risk-sentiment remaining at the centre stage, traders look forward to the release of UK jobs report for fresh impetus. A stronger UK jobs report might prompt some short-covering and provide some immediate respite for the bulls.
Ahead of the monthly employment details, BOE Governor Mark Carney’s remarks at the International FinTech Conference, in London would be closely scrutinized for any clues over the central bank’s monetary policy outlook and would also drive the cross during early European session.
• Forex Today: Yen boosted in Asia risk-off, eyes on BOE Carney, UK jobs
Technical levels to watch
A follow through weakness below yearly lows support near 136.45 level is likely to accelerate the slide towards 136.00 round figure mark ahead of 135.75 horizontal support.
On the upside, any recovery attempts might now confront immediate resistance at 200-day SMA near the 137.00 handle, above which a bout of short-covering might lift the cross beyond mid-137.00s, and 138.00 mark, towards its next major hurdle near 138.20-25 zone.
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