GBP/JPY fall to session lows, 146.00 mark back on sight

   •  Speculation of a longer Brexit extension prompts some fresh selling around the GBP.
   •  The prevalent cautious mood boosts JPY’s safe-haven status and adds to the pressure.

The GBP/JPY cross traded with a mild negative bias through the mid-European session and for now seems to have snapped four consecutive days of winning streak.

The cross stalled its recent positive momentum from sub-144.00 level and was now seen extending the overnight modest pullback from two-week tops amid a softer tone surrounding the British Pound.

The Sterling failed to attract any follow-through buying despite the fact that the UK Parliament passed an emergency bill to prevent no-deal Brexit and extend the fast approaching Brexit deadline beyond April 12.

The EU's lower appetite for short extension and an inconclusive cross-party meeting to break the Brexit deadlock fueled speculations of a longer Brexit extension and exerted some downward pressure on the GBP.

Currently flirting with daily lows, around the 146.30 region, the cross was further pressurized by a modest pickup in the Japanese Yen's safe-haven bid in wake of the prevalent cautious mood around equity markets.

With investors look past the latest optimism over progress in the US-China trade talks, reviving concerns over slowing US economic growth seemed to dent investors' appetite for perceived riskier assets.

It would now be interesting to see if the cross is able to find any buying interest at lower levels or the current pullback marks the end of the recent positive move as the focus remains on the incoming Brexit-related news/developments.

Technical levels to watch

Immediate support is pegged near the 146.00 mark and is followed by the 145.70 region, below which the cross is likely to accelerate the slide further towards challenging the key 145.00 psychological mark. On the flip side, the 146.75-80 region now seems to act as an immediate hurdle, which if cleared might assist the cross to move back the 147.00 handle and the overnight swing high, around the 147.20 region, towards testing its next barrier near the 147.70-80 supply zone.