- GBP / JPY hit by risk aversion, finding correct support at 153.50.
- Probable consolidation between 154.40 and 153.50.
The pound made a sharp correction against the Japanese yen from the highest level in years. The GBP/JPY it failed to exceed 155.00 and lost momentum. Falling equity markets on Wednesday favored the slide by boosting the yen.
The slide found support at 153.50, a critical short-term support that, if broken, should clear the way for further losses, initially targeting the 153.00 area and then 152.20 / 30.
In the short term, as long as it is above 154.00, the pound can bounce towards the 154.50 area. If it consolidates below 154.00, another test of the recent low could take place.
Bond market noise and falling share prices may keep GBP / JPY in the 154.50 / 153.50 range for the time being, with risks sloping to the downside.
In a general outlook, as long as it is above 145.00 / 20 (long-term uptrend line), the outlook will remain positive for the pound.
4 hour chart
Technical levels
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