GBP/JPY Recovers Sharply but Turns Volatile to Trade Flat Near 154.00
The GBP/JPY pair staged a sharp recovery from a 7-week low level of 152.95, touched during earlier Asian session, and jumped to 154.90 before turning volatile and retracing back to currently trade flat around 154.00.
Earlier during Asian session, the pair extended its sharp reversal from nearly 3-month high level of 163.90 touched last week as 'Brexit' fears intensified after the latest poll results on EU referendum, released over the weekend, showed increasing lead for the "Leave" campaign.
The pair, however, managed to recover from lower levels and moved to the vicinity of reclaiming 155.00 psychological mark before turning volatile amid growing uncertainty over 'Brexit'
Although the pair seems to stage a recovery, 'Brexit' worries might continue to keep the British Pound suppressed and restrict any swift recovery for the GBP/JPY cross. Moreover, traders will also take cues from the risk sentiment as depicted by moves in equity markets.
Technical levels to watch
From current levels, sustained weakness back below 154.00 handle, leading to a subsequent break below day's through support near 153.00 round figure mark seems to continue dragging the pair lower, towards testing April lows support near 151.65 area.
Meanwhile on the upside, momentum above 155.00 psychological mark seems to assist the pair to further extend its recovery trend, even beyond 156.00 mark, towards 156.35-40 resistance area. Sustained strength above 156.35-40 resistance has the potential to continue boosting the pair further towards its next major resistance 157.85-90 zone.