GBP/JPY tumbles to near two-week lows, below mid-145.00s ahead of UK jobs data

The GBP/JPY cross extended previous session's sharp retracement from two-month tops and tumbled below the 146.00 handle to near two-week lows.

The cross has now reversed around 240-pips in the past 24-hours and majority of the fall came post-BOE Deputy Governor Ben Broadbent's speech, during a scheduled speech at the Scottish Council for Development and Industry on Tuesday, which failed to provide any clues over rate hike prospects. 

The selling pressure intensified further after Broadbent was quoted saying, via Scotland's press and journal newspaper quoted, that he was not yet ready to vote for a rate hike, which dampened expectations of any immediate BoE action and was seen weighing heavily on the Sterling.

   •  BOE’s Broadbent: ‘Not ready to raise interest rates yet’

Adding to this, a fresh wave of global risk aversion trade, in wake of the latest political drama in the US, provided an additional boost to the Japanese Yen's safe-haven appeal and further collaborated to pair's sharp slide to 8-day lows, below mid-145.00s.

Investors now look forward to the UK labor market report, due for release in a short while from now, and disappointing wage growth numbers could pave way for extension of the pair's reversal move.

   •  UK labour data may leave MPC divided – Lloyds Bank

Technical levels to watch

Immediate support is pegged near the key 145.00 psychological mark, below which the cross is likely to extend the corrective slide even below the 144.00 handle towards its next support near 143.70-65 region.

On the upside, 145.65-70 area now seems to act as immediate resistance, above which the cross could make a fresh attempt to surpass the 146.00 handle and aim towards testing its next resistance near 146.60-65 zone.