GBP/JPY smashed in early London, testing 154.00 bids

GBP/JPY has been hammered at the London open, falling sharply by over 70 pips as strong supply hit the pair, with demand being overwhelemed until it could be partly matched sub 154.00, with the lowest level, so far, reached at 153.80 before a recovery back to 154.22 (UK 10-year yields on a strong bounce now), in what has been an aggressive 'risk-off' open of business in London.

Risk off hammers GBP/JPY

The S&P500 futures are down by almost 0.5%, Gold has taken off in strong fashion towards a session high of $1,271.00, the German DAX is down by 1.3%, US 30-year Treasury yields are collapsing, quoted at 2.47%, as the flight to safety continues.

No specific trigger can be attributed to the current sell-off in riskier assets. In terms of data for today, there is no economic indicators scheduled in the UK. Today's price action in the pair appears to be clearly defined by 'RORO' (risk-on, risk-off flows) coupled with any UK polls on its June 23th EU referendum hitting the wires.

GBP/JPY outlook

In terms of the outlook for the pair, following the aggressive shift of value into lower territory by the specs commuunity in early London, the pair is now attemtpting to find value and further supply sub 154.00, although not much follow through might be seen gven the current recovery in UK yields, looking to re-claim its opening level after being smashed early doors, contributing to the Sterling supply seen. Sellers have clearly claimed the upper hand as long as no vallue is built back above 154.50.