GBP/JPY slides as Brexit talks overshadow upbeat retail sales figure

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    Traders tired of waiting pro-EU news flow out the EU meeting on UK membership ditched Sterling, pushing GBP/JPY to fresh lows despite strong UK retail sales figure.

    No deal yet for Cameron

    All night negotiations yielded nothing for British PM Cameron, who left bilateral talks at 5.30 am GMT. Consequently, traders awaiting positive news flow were scared out of Sterling positions. The sharp rise in UK retail sales was read with skepticism as well, since the jump was mainly due to post Christmas stock clearance.

    Meanwhile, the offered tone around JPY refuses to gather pace despite moderate risk-on in the European equities. The cross fell to a daily low of 161.04, before recovering slightly to trade around 161.33 levels.

    GBP/JPY Technical Levels

    The immediate hurdle is seen at 161.56 (Feb 17 low), above which the cross could re-test daily high of 162.50. On the other hand, a breakdown of immediate support at 159.81 (last week’s low) would expose psychological support at 159.00 levels.
    For more information, read our latest forex news.

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