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
The information 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 Bank S.A. 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 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. See full non-independent research disclaimer.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
