GBP/JPY in fresh multi-year lows near 132.70

The downside pressure around GBP/JPY is now picking up extra pace, relegating the cross to visit levels last seen in December 2012 around 132.70.

GBP/JPY weaker on risk aversion

The strong pick up in the risk aversion sentiment has been weighing on the cross throughout the session, giving extra legs to JPY and prompting it to break below the critical support at 133.00 the figure.

Adding to the downside, GBP has intensified its decline following the BoE’s Financial Stability Report and the speech by Governor M.Carney, who re-asserted the central bank’s intentions to loose its monetary conditions.

GBP/JPY key levels

As the moment the cross is losing 2.64% at 132.67 and a breakdown of 131.50 (monthly low Dec.2012) would expose 130.00 (psychological level) and then 125.63 (monthly low Nov.2012). On the upside, the next hurdle is located at 139.05 (high Jun.29) followed by 145.20 (20-day sma) and finally 153.44 (55-day sma).