GBPJPY – Hammered After Risk Off Event

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GBPJPY – Slammed Lower on Risk Off Event
Today we have the tragic event of the Malaysian Air crash after what is supposedly confirmed a surface to air missile taking out the plane. I want to first extend my prayers to my Malaysian members in here, and to all the family members & loved ones of the passengers.

Events like this are risk off events, meaning indices usually get hammered as the appetite for risk is heavily reduced, especially with the tensions in the Ukraine on the rise.

This risk off event translates into JPY strengthening and JPY pairs going lower, which they did across the board. The pair has now taken out the 173 level we mentioned in the members commentary, if it broke below 173.50. For now, it is attempting to stabilize.

The next key support level is at 172.45, and if this folds, then we’ll see more unwinding towards 171. If the price action stabilizes here, then it will attempt to regain 173 and then 173.75.

gbpjpy

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