FXStreet (Mumbai) – The GBP/JPY pair suffered more than 200-pip loss on Tuesday to trade just above the 189.00 handle.
Risk aversion hurts GBP/JPY
The drop largely represents the risk aversion in the currency markets ahead of the EU summit. The European currencies were offered against the USD on Grexit uncertainty, while the safe haven Japanese Yen continued to hold its own, thereby weighing over the GBP/JPY pair. The spot turned lower from the high of 191.56 to hit a session low of 188.97, before recovering to trade in the band of 189.00-189.10.
Ahead in the day, the cross is at the mercy of the Greece related news flow from the EU summit scheduled later today.
GBP/JPY Technical Levels
The immediate support is seen at 188.98 (June 10 low), under which the pair could extend the losses to 188.55 (June 1 low). On the flip side, a break above 189.50 could see the pair re-test 190.10.
(Market News Provided by FXstreet)