GBP/JPY losses almost 4% during August

FXStreet (Córdoba) - The pound is about to end August with a decline of around 770 pips or 3.85% against the yen. GBP/JPY rose during the previous four months but it continued to be unable to hold above 195.00 and dropped sharply during the last two weeks amid risk aversion, erasing 2015 gains.

Tension in financial markets boosted the yen across the board. The Japanese currencies and the euro were the best performers. GBP/JPY lost more than 700 pips in a few days and bottomed at 183.28 (August 24 low) but rebounded that same day.

Currently it trades around 186.00, near daily lows, about to post the lowest monthly close since April.

GBP/JPY key levels

To the upside, the immediate resistance to consider lies at 187.50 (last week highs) and above here at 190.85/95 and then 195.30. On the opposite direction, the area around 185.00 remains important. Last week it traded below but the pound was able to avoid a daily close lower than 185.00; if it happens the yen could extend gains.