Sterling was sold after BOE Carney’s comments, pushing GBP/JPY to 160.32 (23.6% of 175.02-155.78) before the cross recovered to 160.80 levels.
Weak stocks cap recovery
The risk-off mood is capping the recovery since flight to safety is keeping the demand for Yen intact. The major US index futures are pointing to a weak opening. Consequently, the cross is having trouble to extend recovery above 160.80 levels.
BOE’s Carney said Pound could take a hit on Brexit, which led the currency lower across the board. However, losses in Cable were restricted around 1.42 handle. Therefore, the cross managed avoid losses below 160.32 levels.
GBP/JPY Technical Levels
The immediate resistance is seen at 160.96 (hourly 100-MA), above which the cross could target 161.39 (hourly 50-MA). On the other hand, a break below 160.32 (23.6% of 175.02-155.78) would open doors for a sell-off to 159.37 (hourly 200-MA).
(Market News Provided by FXstreet)