GBP/JPY dumped 2 big figures on Brexit woes

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The cross in the GBP/JPY remains relentlessly offered during the European trading hours, although moved-off lows as the ongoing broad yen weakness offers some respite.

    GBP/JPY drops to more-than 2 year lows

    The GBP/JPY pair plunges -1.34% at 160, recovering slightly from the lowest levels since Nov 2013 struck at 159.65. The cross is seen making minor-recovery attempts as the yen extends weakness versus the buck and drops to fresh session lows at 113.09 last minutes.

    While on the GBP side of the story, the cable remains deep in the red near 1.4160 region, badly wounded by the reports of London mayor Boris endorsing the Brexit campaign, while the UK’s PM Cameron called for an early referendum on Britain’s EU-membership on June 23 2016.

    Calendar-wise, the UK CBI industrial orders data is lined up ahead of the US manufacturing PMI release. While the focus continues to remain on the Brexit debate and on the stocks.

    GBP/JPY Levels to consider

    The pair has an immediate resistance at 161.56/61 (daily high/ 5-DMA), above which 162.57/87 (1h 100-SMA/ 10-DMA) would be tested. On the flip side, support is seen at 159.65 (multi-year lows) below which it could extend losses to towards 159 (Oct 2013 Levels).
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