GBP/JPY finds support at 147.00 and rebounds

The pound is falling against the yen but during the last hour trimmed losses amid a rally of USD/JPY while GBP/USD managed to stabilize.

The GBP/JPY pair dropped earlier today to 147.03, last week low and then rebounded. From the lows rose more than 50 pips amid a slide of the yen, weakened by higher US bond yields. The recovery found resistance at 147.75.

Markets are awaiting Trump’s announcement on the Iran nuclear deal. CNN reported that Trump would stay and the NYT that Trump told him he will withdraw. Volatility around crude oil prices soared.

Technical levels

The pound continues to consolidate around 147.50 against the yen, near 1-month lows. The short-term trend still points to the downside.

To the downside, the immediate support is seen around the 147.00 area that capped the downside today and also last week. Below, the next support might lie at 146.45/50. On the upside, resistance levels lie at 147.80, 148.05 (May 8 high), 148.35 and then 148.95.