GBP/JPY Drops to Six-Week Low
GBP/JPY pair clocked a six-week low of 155.50 on Brexit fears and BOJ’s hesitation to intervene despite Yen’s winning streak.
Trades below 50% Fibo
The
cross remains below 156.36 (50% of 2011 low-2015 high). GBP selling
gathered pace on Brexit fears, while Yen demand remained intact despite
uptick in oil and equity markets.
Moreover, Japan’s Abe ruled
out FX market intervention today even though USD/JPY pair is trading at
its lowest level since Oct 2014. Consequently, the cross had little to
offer for the bulls. The pair now trades around 155.90 levels; down
0.21% on the day.
GBP/JPY Technical Levels
The
immediate support is seen at 155.50 (daily low) under which prices may
drift lower to 155.00. A break lower would expose 154.72 (February
low). On the other hand, a break above 156.36 (505 of 2011 low-2015
high) would shift risk in favor of a rise to 158.44 (Mar 22 low). A
break higher would expose 160.00 levels.
(Market News Provided by FXstreet)
