GBP/JPY Finds Support at 157.00, Still Down More 400 Pips

GBP/JPY Finds Support at 157.00, Still Down More 400 Pips

GBP/JPY is falling sharply on Thursday's on the back of a stronger yen. During the last hours, the pound managed to move off session lows but is still headed toward a decline of more than 500 pips.

GBP/JPY collapse finds support at 157.00

During the Asian session, the pair dropped sharply after the Bank of Japan disappointed markets by holding its monetary policy unchanged. Price dropped from 162.25 to 158.20 in a few minutes and then sank further and bottomed at 157.03, the lowest level in six days.

The area around 157.00 capped the downside and from there it rebounded to the upside. The recovery from the lows found resistance at 158.50. The mentioned area is being tested as the yen pulls back in the market amid a recovery in European and US stocks markets.

Despite falling more than 400 pips on Thursday, the pair still trades above the level it had a week ago but the rally from 151.60 (April low) has ended and the multi-year lows could be exposed again, particularly if the price consolidates below the 157.00 area, where the 20-day moving average currently stand.