GBP/JPY Drops Sharply to 4-Week Lows
GBP/JPY tumbled after the release of the NFP amid a stronger yen in the market and extended weekly losses. The pair is about to end the week sharply lower after making a reversal.
A bad week for GBP
The pair remains weak and continues to trade near daily lows. It bottomed recently at 154.86, level located 200 pips below where it was before the release of the US employment report. The worst-than-expect numbers boosted the Japanese currency in the market, while the pound remained among the worst performers.
From weekly highs, GBP/JPY lost almost 900 pips making a strong reversal from 2-month highs, erasing in a few days May’s gains. Today is falling for the fourth day in a row and headed toward the lowest daily close in 28 days.
Now the pair is attempting to hold above 155.00, but a consolidation below would expose May lows that lie at 153.63 and below here attention would turn to 151.60, where 2016 lows are located. Price needs to rise back above the 158.75/85, in order to remove bearish pressure.