GBP JPY declined to session low
10/5/2016 12:57:12 PM
Having posted a session high at 131.20, the GBP/JPY cross turned sharply lower and has now fell to a fresh session low level to currently trade around mid-130.00s ahead of UK services PMI.
The pair's slip from session high could be ascribed specially to the common bearish sentiment surrounding the GBP, which stays under strong selling pressure across the board among renewed worries of a 'hard Brexit', with the GBP/USD pair breaking below 1.2700 handle to hit a fresh 31-year low.
In spite of a sharp slide in the pound since the beginning of this week, the cross has managed to hold 130.00 handle and has been kept in a broader trading range as offered tone around the JPY, on weakening safe-haven flow, is limiting sharp downslide.
From current levels, 130.00 psychological mark seems to protect instant downside below which the cross is likely to head back towards September monthly low support near 129.60 area before finally falling to its next major support near 129.00 round figure mark.
On the upside, any recovery efforts might now confront immediate persistence near 131.00 handle above which the cross is likely to expand the recovery towards 131.50 persistence.
Fundamental Analysis
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