GBP/JPY drops to test 4-month lows

By FXStreet FXStreet (Córdoba) – GBP/JPY had yesterday the best day in weeks but today is falling again approaching weekly lows. The pair is headed toward the third weekly decline a row accumulating decline of more than 1000 pips since August 16.

GBP/JPY short lived recovery and down again

During the European session the pair bottomed at 183.30 after the release of a lower-than-expected reading in the UK services PMI. Afterwards recovered ground and moved toward 184.00.

The recovery was short lived and during ECB Draghi’s press conference and amid sharply decline of the euro in the market, GBP/JPY broke previous lows and dropped to 182.65, level located under Wednesday’s lows.

Now as GBP/USD moves off fresh monthly lows, the pound is also recovering ground against the yen and it trades at 183.30. GBP/JPY was able to hold above weekly lows located at 183.40/50; if it drops below it would be at levels last seen back in early May.
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Source:: FX Street