GBP/JPY clings to gains near session tops, just below mid-140.00s ahead of BoE

• Fading safe-haven demand weighed on the JPY and helped regain positive traction.
• UK political uncertainty might keep a lid on the upside ahead of BoE Super Thursday.

The GBP/JPY cross reversed an early dip to over one-week lows and is currently placed at the top end of its daily trading range, just below mid-140.00s.
 
Some positive trade-related comments by China's Commerce Ministry led to a turnaround in the global risk sentiment and weighed heavily on the Japanese Yen's safe-haven status, which eventually helped the cross to regain some positive traction.

Focus remains on BoE

The cross recovered nearly 100 pips from intraday swing lows, around mid-139.00s, albeit lacked any strong follow-through amid uncertainty over the outcome of the UK snap election in December and growing possibilities of a hung parliament.
 
It is worth reporting that the latest opinion polls have been indicating a marginal squeeze in the lead for the UK Prime Minister Boris Johnson's Conservative Party and turned out to be one of the key factors holding traders from placing aggressive bullish bets.
 
Investors also seemed reluctant, rather preferred to stay on the sidelines ahead of the Bank of England (BoE) Super Thursday. The BoE is universally expected to maintain the status quo and hence, the key focus will be on the Quarterly Inflation Report (QIR).
 
This will be followed by the post-meeting press conference, where the BoE Governor Mark Carney will explain the QIR and answer questions. Against the backdrop of persistent Brexit/UK political uncertainty, the risk remains tilted to the dovish side and might lead to some weakness for the Sterling.

Technical levels to watch