GBP/JPY plummets to near 6-month lows ahead of May’s Brexit speech

   •  JPY supported by today’s upbeat data/Kuroda's comments.
   •  Global risk-off mood adds the severe downward pressure.
   •  Traders eye UK PM May’s for some immediate respite.

The GBP/JPY cross remained under some intense selling pressure through the mid-European session and tumbled to fresh multi-month lows in the last hour.

A strong bid tone surrounding the Japanese Yen, supported by a fresh wave of global risk-aversion trade and better-than-expected Tokyo Core CPI print, is turning out to be the only factor weighing heavily on the cross. 

Trade war fears over the latest US tariffs spooked global financial markets and was seen underpinning the Japanese Yen's safe-haven demand. Adding to this, the BoJ Governor Haruhiko Kuroda's comments, during his confirmation hearing on Friday, acknowledged the possibility of a stimulus exit and provided an additional boost to the Japanese Yen.

Meanwhile, the British Pound found some support from today's upbeat UK construction PMI but did little to lend any support and stall the pair's sharp fall to its lowest level since September 14. 

Moving ahead, investors on Friday will remain focused on the UK PM Theresa May's Brexit speech, which would influence sentiment surrounding the GBP and eventually provide some fresh impetus. 

Technical levels to watch

Immediate support is pegged near 145.10-145.00 area, below which the fall could further get extended towards 144.20 horizontal support en-route mid-143.00s.

On the upside, any recovery attempts might now confront immediate resistance near the 146.00 handle, which if cleared might trigger a short-covering bounce towards 146.60-70 support zone en-route the 147.00 round figure mark.