GBP/JPY snaps three-day winning streak on the Manchester explosion news

Omkar Godbole FXStreet Contributor

GBP/JPY is down 0.32% at 144.23 in Asia as news of Manchester explosion weighed on the risk sentiment and increased the demand for the Japanese Yen.

An official statement from the Greater Manchester Police says so far 19 people have been confirmed dead, with around 50 injured. The Police have also said that a controlled explosion in the nearby Cathedral Gardens was not a suspicious item. The investigation team is treating it as a terrorist incident until the police know otherwise.

Meanwhile, Flash Markit/Nikkei Japan Manufacturing PMI report released this Tuesday morning showed the pace of expansion in the activity cooled to 52.00 in May; the lowest in six months.

However, the data has been overshadowed by the Manchester explosion. The attack shifts the focus away from the UK general elections.

GBP/JPY Technical Levels

A break above 145.16 (23.6% Fib R of Apr low-May high) would expose 145.54 (10-DMA) and 146.00 (zero levels). On the other hand, a breakdown of support at 144.13 (previous day’s low) could yield a sell-off to 143.33 (38.2% Fib R of Apr low - May high) and 143.00 (zero levels).

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	High
1H	Strongly Bearish	Oversold	Expanding
4H	Bearish	Neutral	Low
1D	Bearish	Neutral	Low
1W	Bearish	Neutral	Expanding
Updated May 23, 00:45 GMT

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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