FXStreet (Córdoba) – The pound was able to eared losses and to closed a gap against the yen. GBP/JPY opened the week sharply lower and then recovered strongly, rising almost 200 pips from the lows.
GBP/JPY open lower, then rebounds
After the Greek referendum, amid a stronger yen in the market, the pair opened the week trading at 189.50/60, after closing Friday above 191.00. It bottomed at189.38 (3-week low) and then turned to the upside. GBP/JPY rallied and filled the gap. It peaked after Wall Street opening bell at 191.65 but then dropped back toward 191.00.
Bearish signal intact
The pound rebounded but It was unable to recover key levels. It lost strength around 191.50 and it was unable to rise above 192.00 that is an important short term level. Another bearish signal is the consolidation of the price below the daily 20-SMA, that currently stands at 193.20.
(Market News Provided by FXstreet)