GBP/JPY faces double whammy amid risk-aversion

The GBP/JPY cross is seen eroding more-than 100-pips in early European trading, on the back of rising demand for the yen as a safe-haven.

GBP/JPY making lower highs on daily sticks

Currently, GBP/JPY drops -0.65% to 126.27, reversing a spike to 127.47. The GBP/JPY remains relentlessly sold-off into widespread risk-aversion, which continues to undermine the risk currency GBP and at the same bolster the safe-have bids for the yen.

The risk-off market profile was mainly triggered by weaker-than expected China trade report, which showed a huge miss on exports and reinforced China slowdown fears into markets.

Data-wise, nothing of note for both the GBP and JPY in the day ahead, except for the US weekly unemployment claims data.

GBP/JPY Levels to consider 

The pair has an immediate resistance at 126.73 (daily pivot), above which 127.08 (5-DMA) could be tested. On the flip side, support is seen at 126 (round figure) that at 125.26 (Oct 13 low).