GBP/JPY heavy, but reverses a dip to 3-1/2-year lows

Having slumped to the lowest levels since Nov 2012, the cross in the GBP/JPY is seen making a minor-recovery attempt back on the 129 handle.

GBP/JPY bounces-off 128.80

Currently, GBP/JPY sinks 2.20% to 129.53, quickly reversing a brief dip to 128.80, three and a half years low. The GBP/JPY cross remains heavily sold-off into more BOE easing calls, especially after Brexit decision, which is expected to severe consequences on the UK’s growth prospects.

While on the JPY-side of the story, the rising demand for the safe-haven yen amid risk-aversion in full steam across Asia, further exacerbates the pain in the GBP/JPY cross. Markets continue to closely track the sentiment surrounding the global equities, while Brexit-related news flow also remains on the radar for further GBP moves.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 131.44 (daily high), above which 132 (round figure) would be tested. On the flip side, support is seen at 128.80 (post-Brexit low) that at 127.57 (Daily S2/ Nov 2012 levels).