GBP/JPY dragging back into 139.00 after Brexit vote recovery bounce

Flip-flopping market sentiment sending GBP/JPY back down to 139.00.
With the Brexit vote in the rearview mirror, focus continues to drift towards sinking market sentiment.

Joshua Gibson FXStreet

GBP/JPY is trading into the low end once more, dipping back towards the 139.00 major level Tuesday's rough ride saw the pair mark in a low near 137.30 and a high above 140.40 on the back of the UK's key Brexit vote, but market sentiment is continuing to sour and send the majority of Yen pairs back down once again.

Market tensions saw the Guppy decline steadily on Tuesday in the run-up to the UK's parliamentary vote on PM May's Brexit withdrawal agreement, and after May's deal met a resounding defeat as was largely expected, the GBP rallied quickly, recovering to the 140.00 major handle, but early Wednesday action is seeing GBP/JPY take another step lower into 139.00 as market sentiment sinks in the Pacific theater. Japanese Machinery Orders for November tumbled to 0.0% (forecast 3.5%, last 7.6%), and now that nobody really knows what will happen with Brexit next, the GBP is giving up ground for the new trading day, with plenty of action on the economic calendar for Wednesday.

The Bank of England's Mark Carney will be delivering a speech at 09:15 GMT, followed closely by December's CPI readings for December at 09:30, and markets are expecting inflation to tick down to 2.1% from 2.3%.

GBP/JPY Technical Levels

GBP/JPY

Overview:
    Today Last Price: 139.06
    Today Daily change: -94 pips
    Today Daily change %: -0.671%
    Today Daily Open: 140
Trends:
    Previous Daily SMA20: 139.42
    Previous Daily SMA50: 142.65
    Previous Daily SMA100: 144.57
    Previous Daily SMA200: 145.7
Levels:
    Previous Daily High: 140.44
    Previous Daily Low: 137.36
    Previous Weekly High: 139.49
    Previous Weekly Low: 137.44
    Previous Monthly High: 145.52
    Previous Monthly Low: 138.86
    Previous Daily Fibonacci 38.2%: 139.26
    Previous Daily Fibonacci 61.8%: 138.54
    Previous Daily Pivot Point S1: 138.1
    Previous Daily Pivot Point S2: 136.19
    Previous Daily Pivot Point S3: 135.02
    Previous Daily Pivot Point R1: 141.18
    Previous Daily Pivot Point R2: 142.35
    Previous Daily Pivot Point R3: 144.26

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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