GBP/JPY Extends Decline to 156.00
The decline that started on Thursday after the Bank of Japan decided to leave monetary policy unchanged in the GBP/JPY pair continued on Friday. The pair dropped further and bottomed at 156.06, the lowest since April 19.
So far, the area around 156.00 capped the decline. Price rebounded and recently reached 156.72 and it was trading at 156.50/55, down 120 pips from yesterday’s closing price.
GBP/JPY dramatic decline
From the level it had before the BoJ decision the pair has fallen more than 500 pips, partially erasing gains from the previous week when it rallied from 153.50 to 161.00. Still the pound holds significantly above 2016 lows that are located at 151.50/60.
In the monthly chart, GBP/JPY it about to post the lowest close since August 2013. If it ends around current levels, it would be a decline of 550 pips; on the positive side for the pound, it would be far from the lows. The trend of the chart continues to point to the downside.
It is the fifth monthly decline out of the last six months. In April, the decline was because of a stronger yen, and during the previous months, the yen was also a resilient currency, but the pound was among the worst performers in the market, amid Brexit fears and monetary policy expectations.