GBP/JPY dumped on yen strength as risk-off picks up

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The cross in the GBP/JPY reversed its 2-day relief rally and resumed its broader downtrend as the risk-off sentiment seeped back in Asia and bolstered the demand for the safe-haven yen.

    GBP/JPY knocked-off below 157 handle

    The GBP/JPY pair plunges -0.90% to 156.75, languishing near fresh session lows posted at 156.65 last minutes. The cross accelerates to the e downside largely on the back of strengthening yen across the board, as the Japanese stocks dive further into the red towards closing hours and continue to crush appetite for riskier assets.

    While, the GBP/USD pair stands resilient to the persisting risk-off market profile, as markets continue to mull over weekend’s G20 meeting outcomes and the headlines on the Brexit debate. Meanwhile, the UK docket remains absolutely data-dry, with the only net lending to individuals data to be reported today.

    GBP/JPY Levels to consider

    The pair has an immediate resistance at 158 (daily high), above which 158.85/159 (10-DMA/ round number) would be tested. On the flip side, support is seen at 156 (round number) below which it could extend losses to towards 155.73 (Feb 25 Low).
    For more information, read our latest forex news.

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