GBP/JPY - rally falters near 145.00

Omkar Godbole FXStreet Contributor

Offered tone around JPY gathered pace, thus helping the GBP/JPY recover from the session low of 142.51. However, the cross failed once again near 145.00 handle.

Trades above 200-DMA

At the time of writing, the pair was trading above the 200-DMA level of 143.66 levels.

The yen strengthened in early Asia after Italians voted against the constitutional reforms. “"I lost and the job that goes is mine", said PM Matteo Renzi after losing the battle for reform.

However, a ‘No vote’ victory seems to have been priced-in by the markets in advance. Consequently, the offered tone around JPY gathered pace, while the risk assets early losses.

Moreover, what we are witnessing in the JPY pairs now is a classic “sell the fact” trade.

GBP/JPY Technical Levels

The pair was last seen trading just above 144.00 handle. Only a daily close above 145.00 would open doors for a more sustained rally to 147.00 (zero figure) and 147.92 (June 17 low). On the lower side, breach of support at 143.66 (200-DMA) would expose 143.10 (10-DMA) and 141.44 (10-DMA).

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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