GBP/JPY drops 50 pips in Asia as Yen catches bid
- Yen finds bids in Asia.
- Focus on stocks and Brexit uncertainty.
Japanese Yen is better bid in Asia, as a result, the GBP/JPY cross is down about 0.20 percent at 150.10.
The British Pound will likely continue to be the least favored currency during risk aversion, given the brexit uncertainty and domestic political turmoil. Political pressure on the UK PM May is raising the spectre of the next UK general election being held before Britain's scheduled EU exit in March 2019, according to a Reuters report.
Also, the post-brexit transition deal may not be as easy to achieve as expected hence investors may refrain from betting big on the Pound. Further, the data released in Asia showed the UK consumer spending fell in January for the first time in 5 years. That said, the rebound in equities could yield a corrective rally in GBP/JPY.
GBP/JPY Technical Levels
A break above 150.53 (resistance on 1-hour) would open up upside towards 151.00 (psychological level) and 151.51 (50-MA on 1-hour). On the downside, the violation at 150.00 (psychological level + 1-hour 10-MA) could yield a sell-off to 149.00 (zero levels) and 148.88 (Feb. 9 low).
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
