GBP/JPY faces double whammy, gives up 127 handle

Dhwani Mehta FXStreet

The cross in the GBP/JPY remains relentlessly offered in the European session, as investors move away from risk currencies and prefer safety bets amid risk-off environment.

GBP/JPY hit by risk-aversion

Currently, GBP/JPY drops -0.42% to fresh session lows of 126.84, moving further away from 127 handle. The GBP/JPY cross faces double whammy as the safe-haven yen is on the rise amid diminishing risk appetite, in wake of shaky European equities and subdued oil prices. While unfavorable sentiment towards risk currencies such as the GBP, also weighs down on the cross.

Moreover, impending Brexit-process concerns and BOJ Kuroda’s latest comments continue influence the cross. Moreover, downbeat UK public sector net borrowing data also added to the downside in the prices.

GBP/JPY Levels to consider

The pair has an immediate resistance at 127.14 (5-DMA), above which 127.79 (daily R1) could be tested. On the flip side, support is seen at 126.40 (Oct 18 low) that at 126 (round figure).

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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