GBP/JPY struggling near 6-week lows, below 143.00 mark

The GBP/JPY cross extended its post-BOE downfall and dropped below the 143.00 handle, to fresh 6-week lows.

The British Pound continues to be weighed down by last week's dovish BOE monetary policy decision and renewed Brexit uncertainty. This coupled with a fresh wave of global risk aversion trade boosted the Japanese Yen's safe-haven appeal and further collaborated to the pair's sharp slide for the second consecutive session on Wednesday. 

Currently trading around the 142.75-70 region, the lowest since June 27, the cross has now decisively weakened below 100-day SMA support and hence, remains vulnerable to extend its near-term downward trajectory, even below the 142.00 handle, towards testing the very important 200-day SMA. 

With an empty UK economic calendar, broader market risk sentiment, which drives demand for traditional safe-haven currencies - like the Japanese Yen, would remain a key determinant of the pair's movement through Wednesday's trading session.

Technical levels to watch

The 142.50 level might continue to protect the immediate downside, below which the cross would turn vulnerable to break below the 142.00 handle and head towards testing the 200-day SMA support near the 141.75-70 region.  

On the upside, any recovery move back above the 143.00 handle might now confront some fresh supply near 143.30-35 area, above which the cross could aim towards reclaiming the 144.00 mark.