GBP/JPY drops more-than 3 big figures on Brexit woes
|A fresh risk-aversion wave gripped markets over the last hour as Brexit jitters heightened and hammered the pound across the board, sending GBP/JPY back towards post-Brexit lows.
GBP/JPY: 134 handle tested to the downside
Currently, GBP/JPY sinks -30.90% to 134.38, quickly reversing a brief dip to 133.97 session lows. The GBP/JPY cross came under fresh selling pressure after the pound plummeted to the lowest levels in more-than three-decades against the US dollar just below 1.32 barrier on increasing concerns over the UK economic outlook after the Brexit decision.
While on the JPY-side of the story, Brexit-led risk-aversion continues to favour the JPY bulls, knocking-off USD/JPY towards daily lows of 101.47 and hence, further adding to the bearish sentiment around the cross.
In the upcoming days, volatility across the financial market is expected to remain high as focus now shifts towards the EU Summit for further clarity on the Brexit decision.
GBP/JPY Levels to consider
The pair has an immediate resistance at 135 (round figure), above which 137.18 (daily pivot) would be tested. On the flip side, support is seen at 133.18 (post-Brexit low) that at 132 (Multi-year low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.