GBP/JPY: bears remain in control below bearish-Brexit-opening gap

GBP/JPY remains on the back foot after an avalanche that the bears triggered at the start of the week ensued post the weekend news and fears regarding what a hard Brexit would mean for the economy and ultimately the pound sterling.

GBP/USD start of week hard Brexit talk volatility, back on the 1.20 handle

Safe havens run to the Yen usually and GBP/JPY has felt that in the sell-off of the pound across the board. GBP/JPY went from 139.60 down to 137.03 in an opening bearish gap while the pound has managed to recover back above the 1.20 handle vrs the greenback after reaching lows at 1.1989, some way of the flash crash low a cent lower. The greenback is still feeling the reversal of the Trump reflation trade and USD/JPY is testing below the 115 handle again after bouncing from the 2017 lows of 113. 74.

GBP/JPY levels

GBP/JPY has broken below the 200 dma at 138.29 on this move and the 1st Sep 2016 highs of 138.81. 136.27 and 2th Nov lows guard 134.89 28th Aug and 10th Nov highs. 140.00 remains the key psychological level to the upside ahead of 141.50.