GBP/JPY: volatile on Brexit polls destroying bull's case
GBP/JPY has been on a three big figure declince on the back of Brexit fears and a market increasing longs in the Yen as displayed in the recent CFTC data while net longs in the pound will have been reduced on the back of the polls.
CFTC: leveraged accounts were bullish in the JPY - ANZ
GBP/JPY dropped from the 157 handle, to score 152.94 in Asia on Monday, but is volatile and rallied 100 pips before turning lower again down to 153.28 lows and moving within a 50 pip range since. This is following the lead in cable, which is in a similar volatile trend to start the week while markets soak up the recent jobs report form the U.S. and dramatically reduce expectations for a June, July or even a 2016 hike from the Fed. For the week ahead, the yen could continue to be favoured in a risk-off environment should Brexit concerns continue to weigh on investors appetite while markets assess the foundations that lie ahead for the world's reserve currency in the greenback. Yellen is up today while heads will then turn to UK PMI's later in the week.
GBP/JPY levels and pivot points:
- R3 156.04
- R2 155.30
- R1 154.44
- S1 152.84
- S2 152.10
- S3 151.24
GBP/JPY has 152.51 and Feb lows in sight after breaking 153.63 May lows on today's bearish spike. The 50 dma has crossed below the 20 dma and bearish pressure remain while the cross trades below the 157.00 psychological resistance level.