GBPJPY losing its strength for the third consecutive day, after it made a short term recovery on Tuesday testing the long term trendline near 129.600. The pair has been testing the 2016 Low near 128.200 for the past two days but failed to break below. Economically, in today’s early sessions, the Yen strengthens on better than expected Gross Domestic Product (QoQ) (Q2) which came as 0.4% vs 0.1% expected. Additionally, the UK has squeezed for the first time since 2012 and an outright recession is a real risk. The UK reported Gross Domestic Growth (GDP) dropped by 0.2% in the second quarter, worse than expectations which was release at 9.30 GMT. Political Stories arises which may be deployed by Prime Minister Boris Johnson to ensure that the UK leaves EU on 31st October and some suggest Brits could go to the polls on the following day – November 1st. Currently the pound is experiencing high selling pressure which has broken the November’2016 low. If Pound continues to drop, it may lead the pair to the next support 125.100 (2016 Low). Until we have some type of resolution to the Brexit, it’s difficult to imagine that rallies will be sustainable.

GBPJPY Today:
Daily open: 128.687
Daily Last high: 128.748
Daily Last Low: 127.765
Daily current growth: -0.66%