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

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

 

 

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