Yen strength sinks GBP/JPY and EUR/JPY, and EUR/GBP continues to fall
Early trading has seen renewed losses for sterling and euro against the yen, while the euro is falling against the pound.
GBP/JPY slumps
GBP/JPY was unable to hold on to the gains made yesterday, and has slipped lower overnight as the impact of the UK consumer price index (CPI) print fades.
Last week’s low at ¥194.00 remains intact for now, but further losses could see this tested. Recent bounces have faltered at ¥200.00, ¥199.50 and then ¥198.00, so these are the targets to watch if the price recovers.
GBP/JPY daily chart
EUR/JPY drops in early trading
EUR/JPY continues to lose ground against the yen, extending the downtrend seen since the end of October.
The bounce from last week’s lows has run out of steam at ¥164.00, and a push back to ¥162.00 looks likely. This marked support last week and also in October. Further losses below this will target ¥158.00, while a bounce will need to clear ¥166.00 to indicate a medium-term bullish move.
EUR/JPY daily chart
EUR/GBP heads lower
EUR/GBP losses have resumed in this par over the past week, after a brief rally to £0.8375.
Further losses will target the £0.83 level, and then the November low at £0.8260. The longer-term bearish view is firmly in place; recent surges since October have faltered below £0.8450, indicating substantial barriers to any near-term upside.
EUR/GBP daily chart
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
