GBP/JPY Reverses a Dip to 161.60, Back Above 162

GBP/JPY Reverses a Dip to 161.60, Back Above 162

31 May 2016, 11:05
Roberto Jacobs

GBP/JPY Reverses a Dip to 161.60, Back Above 162

The cross in the GBP/JPY traded volatile this Tuesday, swinging both sides in extreme ranges, before finally stabilizing in the red above 162 handle.

GBP/JPY on a see-saw ride

Currently, GBP/JPY trades -0.31% to 162.11, having posted day’s low at 161.58 and day’s high at 163.90. The GBP/JPY cross retraced more than 3 big figures from daily tops as the pound turned lower as risk-off returned to the markets on the back of relatively weaker oil prices and falling European equities.

Moreover, a renewed bout of selling seen in the USD/JPY pair, further weighed on the yen cross.  Earlier today, the cross spiked to fresh two-month highs after the cable jolted higher following the release of ORB poll showing 51% favouring Remain, while 46% voted for Leave.

In the day ahead, the sentiment around the oil and stock markets will continue to drive the prices ahead of the US dataflow, which will have major impact on both the GBP and JPY.

GBP/JPY Levels to consider                            

The pair has an immediate resistance at 163 (round number)  above which 163.90 (2-month highs) would be tested. On the flip side, support is seen at 161.72/58 (5-DMA/ Daily low) below that at 160.89/63 (10 & 100-DMA).


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