GBP/JPY breaks through 130.00 mark for the first time since mid-August

Haresh Menghani FXStreet

The British Pound remained heavily offered across the board, with the GBP/JPY cross breaking below 130.00 handle to test the lowest level since mid-August.

Currently trading at a nearly 6-week lows around 129.70-80 region, renewed Brexit concerns on comments from UK Foreign Secretary Boris Johnson has been weighing on the British Pound since Friday.

Adding to this a fresh bout of sell-off in global equities is boosting the safe-haven appeal of the Japanese Yen and exerting further selling pressure around the GBP?JPY cross.

Going forward, investors now turn their attention to the release of minutes from BOJ's latest monetary policy meeting for fresh impetus.

Technical levels to watch

The ongoing momentum seems strong enough to drag the pair below 129.60-50 immediate support towards testing its next major support near 129.15 level below which the cross gets exposed to post-Brexit lows support near 128.90-85 region.

Meanwhile on the upside, any recovery attempts back above 130.00 handle might now confront strong resistance near 130.45-50 region, which if cleared could assist the cross to add on to its recovery gains further towards 131.00 round figure mark.

Sell 38%

Buy 62%

Avg Sell Price 1.3067

Avg Buy Price 1.3204

Liquidity Distribution

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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