GBP/JPY holds weaker below 142.00 mark, closer to multi-week lows

• GBP/JPY slides back closer to three-week lows amid reviving safe-haven demand.
• BoE rate cut speculations, no-deal Brexit fears continued to weigh on the GBP.
• Traders are likely to refrain from placing aggressive bets ahead of BoE on Thursday.

The GBP/JPY cross held on to its weaker tone, below the 142.00 level and remained well within the striking distance of three-week lows set on Tuesday.

Following the previous session's two-way/directionless trading action, the cross met with some fresh supply on Wednesday and was being weighed down by a combination of negative factors.

The fact that the market is still pricing in over 50% chances of a BoE rate cut on Thursday, coupled with fears of a no-deal Brexit turned out to be one of the key factors undermining the British pound.

Adding to this, reviving safe-haven demand for the Japanese yen – despite improving global risk sentiment – further collaborated to the pair’s offered tone through the mid-European session.

Wednesday’s downfall marked the fourth day of a negative move in the previous five, albeit warrant some caution for bearish traders ahead of the highly anticipated BoE policy decision on Thursday.

Hence, it will be prudent to wait for some strong follow-through selling, possibly below a two-month-old ascending trend-line support near mid-141.00, before positioning for any further depreciating move.

Technical levels to watch