GBP/JPY drops to fresh one-month lows post UK data

The GBP/JPY cross remained well offered and refreshed one-month lows after second tier UK economic releases.

Currently trading around 141.85-80 region, spot ran through some fresh offers after data released from the UK showed slowing credit off-take, with net lending to individuals and mortgage approvals falling more-than-expected during the month of April.

Meanwhile, a slightly better-than-expected consumer credit data, at £1.525 billion did little to provide any immediate respite of the British Pound, which remained on the back-foot through early European session on Wednesday in wake of the latest the latest poll that showed May's Conservative Party might fall short of gaining an overall majority in the upcoming election on June 8.

Meanwhile, political uncertainty stemming out of the UK has been the key factor behind the prevalent risk-off environment, which remained supportive of the Japanese Yen's safe-haven appeal and eventually collaborated to the offered tone surrounding the cross.

With the UK economic data out of the way, broader market risk sentiment and political developments would continue to be key determinants of the pair's movement through Wednesday's trading session.

Technical levels to watch

Immediate support is pegged near 141.45-40 region, below which the cross is likely to accelerate the slide even below the 141.00 handle towards testing its next major support near 140.35-30 area.

On the upside, any recovery attempts might now confront immediate resistance near 142.25 level, which if cleared could lift the cross back towards the 143.00 handle en-route its next major hurdle near 143.60 region.