GBP/JPY failed to hold to gains and turned to the downside. It dropped sharply ending a two-day bullish correction. While the yen strengthened across the board during the second half of the day as equities and crude oil prices turned to the downside, the pound weakened in the market pushing GPB/JPY sharply to the downside. The pair that peaked at 166.07, the highest level since last Wednesday, during the Asian session, dropped more than 300 pips from the highs. Recently it bottomed at 162.43. It was trading at 162.60/70, down 1.60% from today’s opening price. GBP/JPY levels to watch To the upside, the pair failed to post a daily close above 165.50 - 165.80, area that offered support back in January and that if broken, it could open the doors for an extension of the recovery. On the opposite direction, a daily close significantly below current level would expose the next relevant support that is the 160.00 area. The pound could post the lowest close since November 2013. For more information, read our latest forex news.