GBP/JPY Tumbles, Eyeing 158.00 Mark
pair witnessed a sharp reversal from 162.50-60 strong resistance,
dragging the pair back below 160.00 psychological mark to currently
trade below 158.50 level.
In the previous two week, the pair had managed to register a handsome recovery from its lowest level since Aug. 2013 on declining fears of a 'Brexit' and on expectations that BoJ would announce a additional stimulus. However, as BoJ failed to deliver the expected stimulus, the pair reversed all of its current week's gains and might now be headed for its first weekly in the past three.
Technical levels to watch
From current levels, the pair might take some support near 158.00 round figure mark. Additional selling pressure below 158.00 mark seems to continue dragging the pair towards its next major horizontal support near 156.50-30 area.
On the upside, 159.00 round figure mark would now be key level to watch for. Should the pair manage to move back above this key resistance area, it could possibly be headed back above 160.00 psychological mark, towards testing its next major resistance near 161.50-60 area.