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GBP/JPY slides more than 300 pips, drops below 160.00

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    GBP/JPY extended the decline after the release of US economic data and bottomed at 159.54, the lowest level since last Wednesday. A combination of a stronger yen and a weak pound pushed the pair sharply to the downside, that is falling more than 300 pips.

    Brexit fears weakened the pound during the European session; the currency is among the worst performers in the market while the yen is the opposite, favored after the Bank of Japan left monetary policy unchanged.

    GBP/JPY testing last week lows


    The decline of the pair was capped slightly above last week lows that are located at 159.45/50. A break lower could open the doors to further losses. Currently, the pair is attempting to move off session lows as it trades at 159.95, 460 pips below last week highs.

    Below 159.40, the next support levels might lie at 158.55 (Feb 26 high) and 156.15 (March lows). On the opposite direction, resistance levels might be seen at 160.50 (23.6% Fibonacci retracement of the recent decline from 164.00),161.55 (Asian session low) and 162.50 (short-term downtrend line from last week highs).
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