The GBP/JPY chart is looking ugly

The GBP/JPY chart is looking ugly

14 June 2016, 21:31
Sherif Hasan

GBP/JPY falls below 150.00

The consolidation phase in GBP/JPY appears to be over as the pair plunges another 190 pips today to the lowest since August 2013.

The decline started late last year but the pair had been in a consolidation phase since February. It's now broken down through support after five consecutive days of selling.

At first glace, the chart looks terrible but the next level to watch is the 61.8% retracement of the rally since 2012 and that sits at 148.23.

The problem with technicals is they can give false signals and this is likely to be one if Britain doesn't vote to leave EU.

A break below 18.23 along with a vote for a Brexit, however, could mean a fall all the way back to 120.00.
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