GBP/JPY hits fresh lows under 140.00, holds bearish tone

• Yen consolidates gains as Pound ends session near daily lows. 
• Key event ahead: Bank of England announcement on Thursday. 

The GBP/JPY pair broke below 140.25 and tumbled to 139.86, hitting a fresh daily low. As of writing trades at 139.94, slightly above the weekly low and holding a bearish tone. 

The move lower took place amid market concerns regarding US-China trade deal negotiations. Reuters reported that the deal could be delayed until December boosting the Japanese yen modestly. 

The Pound moved all day with a bearish bias and showing weakens, amid new polls in the United Kingdom. On Thursday, the Bank of England will announce its decision on monetary policy. No change is expected and could end up being a non-event. 

According to ANZ analysts, the pound coasted sideways for much of the session with the upcoming general election still garnering plenty of attention. “PM Johnson’s Conservative Party remains in the lead with tonight’s BoE policy decision to provide a brief distraction to participants.” They also argued the yen held relatively strong on Wednesday on bond yields, but they warn it remains exposed as markets remain largely in risk-on mode. 

From a technical perspective, GBP/JPY is biased to the downside after breaking a short-term uptrend line. A consolidation below 140.00 would expose 139.55 and if the slide continues, attention would turn to the 139.00 zone that capped the decline last week. A recovery back above 140.30 would alleviate the bearish pressure.