GBP/JPY ends Monday with a 100-pips decline

FXstreet.com (Córdoba) - The GBP/JPY rose during the American session but failed to hold and pulled back ending Monday below 171.00 with a decline of a hundred pips. During New York trading the pair rose above 172.00 but as it did during Asian hours, failed to hold an retreated. Cable found support twice during the day above 170.40, that has become an important are in the short-term.

While the Yen was among the best performers on Monday boosted by falling stocks and a recovery in US treasuries, the Pound was on the opposite side being the weakest within European currencies.

Technical outlook for the GBP/JPY

The pair has fallen in the last three trading days, retreating almost 400 pips from January 2nd highs. According to analysts from MIG Bank the GBP/JPY weakened near the psychological resistance at 175.00 but despite the recent decline they still see a technical structure favoring the upside, “as long as the support at 169.78 holds”.