GBP/JPY drops 300 pips, approaches 2016 lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    A combination of a stronger yen, boosted by risk aversion and a weak pound, pushed GBP/JPY sharply to the downside. The pair is falling 300 pips so far on Tuesday and it is trading slightly above February lows.

    GBP/JPY back under pressure

    Last Friday, the pair dropped sharply and fell below the 20-day moving average and also under 160.00. Yesterday it remained steady around 158.60/70 and today again is falling sharply.

    It started today trading at 158.80. It moved all day with a bearish bias. Recently bottomed at 155.70, the lowest level since February 24 and currently it trades at 156.10/15, down 1.65% for the day so far. For the second time in three days, it is losing more than 1.50% and it has erased March gains.

    Price is just a few pips above 154.71 (2016 low) and the mentioned level could be tested soon. If today it ends the day below 156.00 it would post the lowest daily close since October 2013.
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