GBP/JPY drops more-than 3 big figures on Brexit woes

Dhwani Mehta FXStreet

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).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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