GBP/JPY plunges 300-pips to 145.00 on renewed Brexit jitters

Brexit anxiety, awful UK retail sales data drag GBP/JPY sharply lower.
All eyes on the UK Brexit Cabinet meeting and UK inflation data for fresh directional move.

Dhwani Mehta FXStreet

The relentless selling in the pound amid renewed Brexit jitters, knocks-off the GBP/JPY cross to the lowest levels in two weeks just below the 145 handle.

Brexit deal – a distant dream, GBP sinks

The latest news that the UK Brexit Secretary Raab resigned from his position amid disagreement on indefinite Irish border backstop poured cold water on a potential Brexit deal likely to be clinched this month, bring Brexit blues back to the fore.

The investors are heavily selling off the pound on re-emergence of Brexit uncertainty that pushed the Cable briefly below the 1.28 handle, down nearly 1.50% so far. The GBP/JPY cross sinks -1.77% to 145.04 levels, with further downside opening up towards the 143.25 level-

Moreover, a downside surprise delivered by the UK retail sales report exacerbated the pain in the sterling, collaborating to further declines in the cross. Markets will continue to weigh in the Brexit-related developments, with all eyes on the US retail sales and the sentiment on the Wall Street for further trading impetus.

GBP/JPY Technical Levels

GBP/JPY

Overview:
    Last Price: 145.3
    Daily change: -2.4e+2 pips
    Daily change: -1.62%
    Daily Open: 147.69
Trends:
    Daily SMA20: 146.3
    Daily SMA50: 146.95
    Daily SMA100: 145.86
    Daily SMA200: 147.28
Levels:
    Daily High: 148.44
    Daily Low: 146.32
    Weekly High: 149.5
    Weekly Low: 146.86
    Monthly High: 149.52
    Monthly Low: 142.78
    Daily Fibonacci 38.2%: 147.63
    Daily Fibonacci 61.8%: 147.13
    Daily Pivot Point S1: 146.53
    Daily Pivot Point S2: 145.37
    Daily Pivot Point S3: 144.42
    Daily Pivot Point R1: 148.64
    Daily Pivot Point R2: 149.59
    Daily Pivot Point R3: 150.75

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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