Another leadership crisis has weighed down the British Pound. How does the GBPJPY pair trade currently? Let’s take a look at the 30 January GBPJPY Technical Analysis.
30 January, GKFX – The GBP/JPY cross extended last week’s retracement slide from the 156.00 handle, fresh post-Brexit highs and has now dropped to its lowest level since mid-January.
- GBP weighed down by the latest UK political woes.
- Risk-off mood underpins JPY and adds to selling pressure.
A combination of factors continued exerting downward pressure for the fourth consecutive session on Tuesday. The British Pound was being weighed down another leadership crisis, wherein Tories are believed to be preparing to sign letters demanding a vote of no confidence in the UK PM Theresa May’s authority.
Adding to this, a fresh wave of global risk-aversion trade, as depicted by a sea of red across equity markets, was seen underpinning the Japanese Yen’s safe-haven appeal and further collaborated o the pair’s decline through the early European session.
The spot has now eroded around 400-pips over the last four trading session, with bears eyeing a break below the 152.00 handle to position for additional near-term depreciating move in absence of any major market moving economic releases.
30 January GBPJPY Technical Analysis
A convincing break below the mentioned handle is likely to aggravate the selling pressure and accelerate the downslide towards 151.70-65 intermediate support en-route 151.15 level and the 151.00 round figure mark.
On the flip side, any recovery attempts might now confront fresh supply near the 152.50-55 region, which if cleared might trigger a short-covering bounce towards the 153.00 handle ahead of mid-153.00s.
This article 30 January GBPJPY Technical Analysis was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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