- GBP/JPY hits fresh lows since August 2017 and then rebounds.
- The trend continues to point down as pound heads for ninth slide in-a-row versus the yen.
The GBP/JPY rebounded during the last hours amid a correction of the Japanese yen across the board. The recovery in equity prices weakened the yen. The pair rose from the lowest in 11 months back above 141.00. As of writing was trading at 141.35, slightly below Friday’s close and more than a hundred pips above day’s low.
The pound and majors are quiet on Monday, posting modest gains versus the US dollar, but consolidating Friday’s sharp slide. The greenback is sharply higher against Emerging Market currencies on the back of the Turkish crisis.
The dramatic slide of the lira pushed the yen to the upside during the Asian session amid risk aversion. https://www.fxstreet.com/technical-analysis/sentiment/risk-appetite
The global market moved off lows and eased the pressure on GBP/JPY. The pair rose from 140.23, finding resistance at 141.80. It failed to hold on top of 141.50 and it was moving toward 141.00.
Despite the rebound from the lows, the short-term perspective was still pointing to the downside, with the pound headed to the lowest close since August 28, 2017, versus the yen. Days ago, the pound was under pressure amid Brexit no-deal fear and today is a stronger yen the main driver of the slide in GBP/JPY.
GBP/JPY Technical Levels
To the upside resistance levels might be located at 141.80/90, 142.30 and 143.10. On the flip side, support might be seen at 140.90, followed by 142.20 (daily low) and 139.50.
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