GBP/JPY drops to lowest since October 2016, now on Yen’s strength

Trump tweets more tariffs triggering risk aversion, Yen soars.
GBP/JPY extends losses to multi-year lows, approaches 130.00

Matías Salord FXStreet

After a brief pause yesterday, the GBP/JPY pair resumed the decline on Thursday. Over the last weeks, a decline of the pound was the main driver but today, the crucial factor was a rally of the Japanese yen.

The GBP/JPY was already lower and accelerated to the downside following a tweet from US President Trump, announcing more tariffs to Chinese goods. "Trade talks are continuing, and during the talks the US will start, on September 1st, putting a small additional tariff of 10% on the remaining 300 billion dollars of goods and products coming from China into our country," he tweeted out, adding "this does not include the 250 billion dollars already tariffed at 25%."

Trump’s announcement triggered a flight-to-safety that boosted the yen further to the upside. GBP/JPY tumbled to 130.39, the lowest level since October 2016. Near the end of the session, it was holding near the lows still under intense bearish pressure. The DOW JONES was down more than 1% while US yields were sharply lower. The 10-year fell below 1.90%, the lowest since 2016.

Technical levels

GBP/JPY

Overview
Today last price	130.41
Today Daily Change	-1.84
Today Daily Change %	-1.39
Today daily open	132.25

Trends
Daily SMA20	134.73
Daily SMA50	136.22
Daily SMA100	140.45
Daily SMA200	141.96

Levels
Previous Daily High	133
Previous Daily Low	131.84
Previous Weekly High	135.68
Previous Weekly Low	134.24
Previous Monthly High	137.8
Previous Monthly Low	131.61
Daily Fibonacci 38.2%	132.56
Daily Fibonacci 61.8%	132.28
Daily Pivot Point S1	131.73
Daily Pivot Point S2	131.2
Daily Pivot Point S3	130.57
Daily Pivot Point R1	132.89
Daily Pivot Point R2	133.52
Daily Pivot Point R3	134.05

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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