What caused GBP/JPY to drop 400 pips in 7 hours?

Beginner Questions
1

Hello everyone.

Just looking at the GBP/JPY and saw that it’s down over 400pips so far today and was just curious as to what caused this? The pound was on it’s way back up but hit a wall at 175.00 then slowly declined back 170.00 mark and then all of a sudden, as of 8am this morning it tumbled 400pips!

So I’m looking at the economic calender and there were two announcements from Japan with an impact factor of two. The announcements were average, one was ever so slightly positive and the other was ever so slightly negative.

So why the 400pip change and in such a short period of time? It wasn’t just the GBP that was down either… the EUR and the USD we both down over 200pips also.

So why is the Yen suddenly on steroids as of 8am this morning?

2

If you’re even remotely serious about aligning yourself with current themes impacting market sentiment then you might want to consider embracing a decent news feed/market wrap update to stay abreast of ongoing dominant & current market flows. Failing that, dial into your brokers news wire if they provide one.

Building up that kind of background knowledge would have had you focused this morning on what was driving sentiment from weekend output, who was in the driving seat & which sectors are/were likely to struggle.

Google or tap items of interest into the search bar at the top of each page.