GBP/JPY tumbles to fresh lows, risks breaking below 154.00 mark

   •  GBP weighed down by incoming softer UK data.
   •  Risk aversion trade boosts JPY’s safe-haven demand. 
   •  Technically seems vulnerable to slide further. 

The GBP/JPY cross remained heavily offered for the second consecutive session and dropped to the 154.00 neighborhood during the mid-European session on Monday. 

The cross extended its corrective slide from fresh post-Brexit highs and the selling pressure aggravated following the release of yet another disappointing UK PMI print. Today's softer-than-expected UK services PMI added to last week's weaker UK manufacturing and construction PMI prints and was seen weighing on the British Pound. 

Adding to this, a fresh wave of risk aversion trade, as depicted by a selloff across global equity markets underpinned the Japanese Yen's safe-haven appeal and further collaborated to the pair's sharp fall at the start of a new trading week. 

With today's slide, the cross has now eroded over 50% of last week's strong up-move and hence, a follow-through weakness, led by some additional profit-taking, now looks a distinct possibility ahead of BOE's Super Thursday. 

Technical levels to watch

On a sustained weakness below the 154.00 handle, the cross is likely to accelerate the fall towards 153.40-30 horizontal support before eventually breaking below the 153.00 mark towards retesting 152.45-40 support.

On the flip side, any recovery attempts might now confront fresh supply near 154.40 level, above which the cross seems more is likely to move back towards reclaiming the key 155.00 psychological mark.