GBP/JPY smashed 10 big figures on sterling's debacle

GBP/JPY has smashed through daily support on the incredible move in the pound where IG Index have reported the low in cable as low as on the 1.12 handle while Reuters low was 1.1378.

For those given, there were not any bids for a while there making for further damage and GBP/JPY was in free fall 131.15 to 122.75 on just a five minute stick. There are no clear reasons for this move, but the usual ideas of either a fat finger or a flash crash from an algorithmic system being turned off and machines kicking in without liquidity from any banks to save the day anymore, especially in such early Asian hours. At the same time, French President Hollande came out with a strong statement about Britain's negotiations when he said, "Britain must suffer the consequences of leaving the EU in order to save the institution from an existential crisis", adding,"There must be a threat, there must be a risk, there must be a price. Otherwise, we will be in a negotiation that cannot end well." Hollande prefers ‘Hard Brexit’ to avoid contagion

GBP/JPY levels

We have not seen these levels since July 2012 while 120.00 is the obvious psychological level with 120.80 as a key support while 129.00 is the upside resistance and previous daily support.