GBP/JPY tumbles to fresh 6-week lows near mid-143.00s

After yesterday's attempted recovery move, the GBP/JPY cross came under some renewed selling pressure and broke below the 144.00 handle to fresh six-week lows.

Sentiment around the British Pound turned weaker after the BoE, in its latest quarterly inflation report, lowered the UK growth and inflation forecasts for 2017 and 2018. This coupled with persistent Breixt uncertainty, after the latest headlines that the UK government has denied reports that it was willing to pay a Brexit divorce bill of €40b, continued exerting some selling pressure around the British Pound. 

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Meanwhile, a fresh wave of safe-haven demand provided an additional boost to the Japanese Yen and also collaborated to the pair's fall to the lowest level since June 28, around the 143.60-55 region. 

With today's slide, the cross now seems to have confirmed a fresh bearish breakdown and now seems vulnerable to extend the near-term downward trajectory, possibly towards its next major support near the 142.00 handle.

Technical levels to watch

Immediate support is pegged near 143.35 level, below which the cross is likely to break below the 143.00 region and aim towards testing 142.50-50 intermediate support en-route the 142.00 round figure mark. On the flip side, any recovery attempts might now confront fresh supply near the 144.00 area, above which a bout of short-covering could lift the cross back towards 144.55-60 horizontal resistance.