GBP/JPY drops to six-week low

GBP/JPY pair clocked a six-week low of 155.50 on Brexit fears and BOJ’s hesitation to intervene despite Yen’s winning streak.

Trades below 50% Fibo

The cross remains below 156.36 (50% of 2011 low-2015 high). GBP selling gathered pace on Brexit fears, while Yen demand remained intact despite uptick in oil and equity markets.

Moreover, Japan’s Abe ruled out FX market intervention today even though USD/JPY pair is trading at its lowest level since Oct 2014. Consequently, the cross had little to offer for the bulls. The pair now trades around 155.90 levels; down 0.21% on the day.

GBP/JPY Technical Levels

The immediate support is seen at 155.50 (daily low) under which prices may drift lower to 155.00. A break lower would expose 154.72 (February low). On the other hand, a break above 156.36 (505 of 2011 low-2015 high) would shift risk in favor of a rise to 158.44 (Mar 22 low). A break higher would expose 160.00 levels.