GBP/JPY slides as Brexit makes a comeback

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 15, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The latest poll conducted by UK’s telegraph brought back Brexit fears to the forefront, pushing the GBP/JPY cross to a four-day low of 160.30 levels.

    GBP offered across the board

    British Pound is being offered across the board after the poll showed Britons are likely to vote in favor of Brexit at the referendum to be held on June 23rd. Meanwhile, oil-led risk-off action in the equity markets is also keeping the bid tone around JPY strong.

    The cross was already under pressure after BOJ left the key rates unchanged but removed a line from its statement which said rates could dive further into the negative territory. The cross clocked a high of 162.94 before the sell-off resumed.

    GBP/JPY Technical Levels

    The immediate support is seen at 160.00, under which the cross could drop to 159.51 (23.6% of 175.02-154.72). On the other hand, a break above immediate hurdle at 160.72 (Mar 10 low) would expose resistance at 161.38 (10-DMA).
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