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GBP/JPY eyes a break to the downside as yen stays bid


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GBP/JPY looks to hold a break below the 100-day moving average


ForexLive

The yen is catching some bids here in early European trading and with that yen pairs have been brought to session lows for the day. Of note, GBP/JPY is extending its move below the 100-day MA (red line) @ 145.87 as the pair now touches a low of 145.50 on the day.
Hold a break below the key level and price bias will be more in favour of sellers and this would be the first break back below the level since mid-September. There is some minor support around 145.50 and at the 145.00 handle but the current backdrop continues to justify a move lower in the pair.
The pound is facing woes as Theresa May comes under pressure from a possible no confidence motion being tabled. Even if she may win out in the end – there still isn’t any suitable replacement candidate to challenge her – it’s still making for nervous and uncertain times in UK politics and that’s something traders do not like.
Couple that with the fact that markets are starting to turn risk off again, it’s making for a potent combo to send the pair lower still in the session ahead.

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