GBP/JPY - rally falters near 145.00
|Offered tone around JPY gathered pace, thus helping the GBP/JPY recover from the session low of 142.51. However, the cross failed once again near 145.00 handle.
Trades above 200-DMA
At the time of writing, the pair was trading above the 200-DMA level of 143.66 levels.
The yen strengthened in early Asia after Italians voted against the constitutional reforms. “"I lost and the job that goes is mine", said PM Matteo Renzi after losing the battle for reform.
However, a ‘No vote’ victory seems to have been priced-in by the markets in advance. Consequently, the offered tone around JPY gathered pace, while the risk assets early losses.
Moreover, what we are witnessing in the JPY pairs now is a classic “sell the fact” trade.
GBP/JPY Technical Levels
The pair was last seen trading just above 144.00 handle. Only a daily close above 145.00 would open doors for a more sustained rally to 147.00 (zero figure) and 147.92 (June 17 low). On the lower side, breach of support at 143.66 (200-DMA) would expose 143.10 (10-DMA) and 141.44 (10-DMA).
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.