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GBP/JPY drops below 160.00 as US stocks open lower

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The bid tone around JPY strengthened following a weak opening on the Wall Street, pushing the GBP/JPY cross to a session low of 159.76 levels.

    Dips below 23.6% Fibo

    The pair now trades well below 160.32 (23.6% of 175.02-155.78) levels. Yen ticked up in early Europe following the risk-off in the equities, but the cross managed to recovery above 160.32. However, a 0.60% drop in the Dow Jones made sure the cross fell to fresh session lows.

    Furthermore, Cable also dropped below 1.42 levels after Bank of England’s Carney came signaled a possible sell-off in Sterling if Britons vote in favor of Brexit.

    GBP/JPY Technical Levels

    The pair currently trades around 159.85 levels. The immediate support is seen at 159.80 (Feb 11 low), under which the cross could drop to 158.55 (Feb 26 high). On the other hand, a break above 160.32 (23.6% of 175.02-155.78) could send the cross higher to 161.00 handle.
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