GBP/JPY extends Thursday’s corrective slide from yearly tops, drops to 146.00 handle

The GBP/JPY cross extended previous session's BoE-led corrective slide and dropped to 146.00 mark, before recovering few pips to currently trade around 146.15 region.

Thursday's dovish BoE quarterly inflation report, where the central bank lowered its GDP growth forecast for 2017 and also revised down inflation projections for 2018 and 2019, continued weighing on the British Pound across the board.

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This coupled with a slight deterioration in investors' rise-appetite boosted the Japanese Yen's safe-haven appeal and further collaborated to the pair's offered tone for the second consecutive session.

With today's slide, the cross has now reversed all of its weekly gains and now seems to be headed for its first weekly decline in the previous four. It, however, remains to be seen if the ongoing slide signals formation of a near-term top or turns out to be a corrective slide following the pair's recent up-surge of over 1200-pips since mid-April.

Amid absent fundamental drivers, in-terms of major market moving economic releases, the cross remains at the mercy of broader market risk sentiment, which derives demand for traditional safe-haven assets, including the Japanese Yen.

Technical levels to watch

On a sustained break below the 146.00 handle, the cross is likely to accelerate the slide towards weekly lows support near 145.65 level before eventually heading towards testing the key 145.00 psychological mark.

Meanwhile on the upside, 146.60 level now becomes immediate resistance, above which the cross is likely to aim towards reclaiming the 147.00 handle ahead of its next resistance near 147.70-75 area.