It’s been a disastrous start to the year for cable bulls and with the December low giving way in GBP/JPY today, the picture continues to worsen.
GBP/JPY daily
GBP/JPY has fallen 600 pips in three days of selling heavy and is trading at the lowest since Nov 1. The break below the 38.2% retracement of the Q4 rally leaves virtually zero support until 178.86.
The strength and persistence of sterling selling this year is a bit of a mystery but I suspect it’s flow related. Until those flows dry up, it’s impossible to fight them.
