GBP/JPY looks poised for weakest daily close this year

Technical Analysis

Author: Justin Low | gbpjpy

GBP/JPY continues to head lower as the lira's woes is empowering the yen

It's tough to keep up with the lira's movement. Look at it and it's 6.25. Blink once and it jumps to 6.34. Astonishing. Either way, the fast and furious decline in the lira today is giving rise to the yen as risk-off tones are hitting the market once again.

The dollar and swissie are also bid as a result of this.

As for GBP/JPY, it looks like we may be heading for the weakest daily close since August last year if the mood keeps up. The weakest daily close this year was 140.61 on Wednesday.

Sellers remain firmly in control and the near-term chart pretty much tells all you need to know:

Buyers have struggled to make a firm break above the 100-hour MA (red line) in trading this week and the lira's fall and risk-off tones here is giving added conviction for sellers to now drive price lower instead.

Right now, the year's low @ 139.90 and support at 140.00 will be eyed ahead of today's close. Following that, the 24 August 2017 low @ 139.31 will come into focus next. Watch out below...

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