GBP/JPY hammered down to near 5-month lows, around 137.00 mark

 •  The global flight to safety provides a strong boost to the JPY’s safe-haven status.
   •  The UK political/Brexit uncertainties do little to ease the prevailing bearish pressure.

The safe-haven Japanese Yen remained well bid across the board and dragged the GBP/JPY cross to nearly five-month lows, with bearish eyeing a break below the 137.00 handle.

The US President Donald Trump's unexpected move to slap 5% tariffs on all goods coming from Mexico triggered a fresh wave of global risk aversiontrade, which was evident from a sell-off across equity markets. 

The already weaker global risk sentiment deteriorated further in the wake of the latest disappointment from the official Chinese manufacturing PMI and provided a strong boost to the Japanese Yen's relative safe-haven status.

With the global flight to safety turning out to be a key factor exerting heavy downward pressure on the cross, growing fears of a no-deal Brexit kept the British Pound on the defensive and did little to ease the bearish pressure.

This coupled with the fact that the Tory leadership contest will only get underway in the second week of June, there isn't much of a reprieve to be seen, though highly oversold conditions set the stage for some short-covering bounce.

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