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.
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/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.
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