FXStreet (Mumbai) – The GBP/JPY pair is down for the sixth consecutive session on the back of risk aversion and dropping BOE rate hike bets.
Trades at three-week lows
The pair is trading at the three-week low after the losses in the Asian equity markets dragged the European equities lower as well. The pan-European Euro Stoxx 50 index dropped more than 1.5%. The traditional safe haven assets, including the Japanese Yen strengthened on account of risk aversion in the markets.
Meanwhile, the Sterling suffered as the markets believe the risk aversion and the drop in the Fed rate hike would mean the BOE rate hike would be delayed as well. Moreover, the markets now see the BOE rate hike happening in late 2016.
GBP/JPY Technical Levels
The pair is now trading near 181.00 levels. The immediate support is seen at 181.00, under which the losses could be extended to 180.36 (Sep 7 low). On the other side, resistance is seen at 181.62 (Sep 24 low) and 182.00 levels.
(Market News Provided by FXstreet)