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27 Aug 2013
GBP/JPY, grounds crumbling; will 150 hold on?
FXstreet.com (Chicago) - GBO/JPY plunged to 2-week lows after heavy sell-off by market participants rushing to protect capital in case of international conflict triggered by last week’s Syrian attack to civilians.
Safe haven mentality?
US Secretary of State John Kerry stated the use of chemical weapons in last week’s civilian attack was “undeniable”. The US Department postponed urgent meeting with Russia to solve and take measures against the Syrian government after strong public declarations. The pair has declined 1.57%, erasing partially gains obtained throughout the past two weeks. The yen has strengthened as it is considered a safe haven currency during tense geopolitical events.
GBP/JPY Technical Levels – Bearish bias, 2-week lows
Price action reveals a steep breakdown from 153.00 zone. At 150.77, the pair trades close to 2-week and session lows reached earlier at 150.73. On the downside, supports are aligned at 150.68 (August 2nd lows), 150.45 (August 9th highs) ahead of 150.23 (August 6th lows). The upside marks resistances at 151.00 (August 4th lows), 151.16 (August 13th lows) followed by 151.41 (August 14th lows). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis, trading below the EMA20 and with a MACD indicator pointing down.
Safe haven mentality?
US Secretary of State John Kerry stated the use of chemical weapons in last week’s civilian attack was “undeniable”. The US Department postponed urgent meeting with Russia to solve and take measures against the Syrian government after strong public declarations. The pair has declined 1.57%, erasing partially gains obtained throughout the past two weeks. The yen has strengthened as it is considered a safe haven currency during tense geopolitical events.
GBP/JPY Technical Levels – Bearish bias, 2-week lows
Price action reveals a steep breakdown from 153.00 zone. At 150.77, the pair trades close to 2-week and session lows reached earlier at 150.73. On the downside, supports are aligned at 150.68 (August 2nd lows), 150.45 (August 9th highs) ahead of 150.23 (August 6th lows). The upside marks resistances at 151.00 (August 4th lows), 151.16 (August 13th lows) followed by 151.41 (August 14th lows). According to the FXstreet.com trend index, the pair is slightly bearish on one-hour timeframe analysis, trading below the EMA20 and with a MACD indicator pointing down.