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GBP/JPY plummets to 6-month low

FXStreet (Córdoba) - GBP/JPY is falling for the fifth day in a row and recently bottomed at 168.01, reaching the lowest price since March. The pair broke below 169.30 (Sep low) and tumbled quickly toward 168.00.

While cable is among the worst performers across the board, not even able to post gains versus the US dollar, the yen is rising sharply supported by risk aversion.

GBP/JPY eyes March low

The slide of the pound pushed the pair toward March lows that lie at 167.60/70, the nearest long term support. Below here it would be trading at levels last seen early in February.

Despite showing oversold readings and while many traders expected a bullish correction after falling 500 pips, GBP/JPY accelerated to the downside, and so far lost 650 pips from the level it had a week ago.

Dot plot completely unwound- BBH

Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman explained the hawkish bias of the dot-plot released at last month's FOMC meeting has been completely unwound.
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