GBP/JPY depressed around 130.00

The bearish note around the Sterling plus the increasing buying interest in the Japanese currency has dragged GBP/JPY to fresh lows around 128.80.

GBP/JPY weaker on ‘Brexit’

The cross saw its decline intensified on Wednesday, briefly testing levels last seen in November 2012 around 128.80 although regaining the 130.00 handle soon afterwards.

The risk aversion theme continues to support the demand for the safe haven JPY today, while the resurgence of ‘Brexit’ woes keep taking a toll on GBP sentiment.

Looking to Thursday’s session, Kuroda’s speech appears as the main event, seconded by the release of the Coincident/Leading index. In the UK, Industrial/Manufacturing Production are due ahead of the NIESR GDP Estimate.

GBP/JPY key levels

As the moment the cross is losing 1.74% at 130.15 and a breakdown of 128.80 (low Jul.6) would aim for 125.63 (monthly low Nov.2012) and then 124.68 (monthly low Oct.2012). On the other hand, the initial up barrier lines up at 133.18 (post-Brexit low Jun.24) ahead of 139.05 (high Jun.29) and finally 144.79 (20-day sma).