GBP/JPY keeps the red below 131.00 mark ahead of BoE

• GBP/JPY edged lower on Thursday amid reviving safe-haven demand for the JPY.
• Thursday’s key focus will be on the latest monetary policy update by the BoE.

The GBP/JPY cross maintained its offered tone through the early European session, albeit managed to recover a bit from daily lows and is currently just bleow the 131.00 mark.

Following the previous rather volatile swings, the cross met with some fresh supply on Thursday and the downtick was sponsored by reviving safe-haven demand for the Japanese yen amid the prevailing cautious mood.

Mounting fears over the economic fallout from the coronavirus pandemic, leading to a global recession, continued weighing on investors' sentiment and the same was evident from a weaker tone around the equity markets.

On the other hand, the British pound was seen digesting the UK government's measures to contain the virus outbreak and the latest UK consumer inflation figures, which were largely offset by Thursday's disappointing UK retail sales data.

With the JPY price dynamics turning out to be an exclusive driver of the pair's momentum on Thursday, market participants now look forward to the latest monetary policy update by the Bank of England for some meaningful impetus.

Technical levels to watch