GBP/JPY: recovers from Westminster attack lows

Currently, GBP/JPY is trading at 138.48, down -0.66% on the day, having posted a daily high at 139.53 and low at 137.77.

GBP/USD bounces 50 pips off post-Westminster-attack lows

GBP/JPY has recovered from the lows sterling made after reports that a possible terror attack had occurred at Westminster Bridge and Parliament. While it is a tragedy, it is not of the magnitude of the 7/7 bombings or recent attacks on mainland Europe that we have seen in recent times. Sterling dropped vs the dollar to 1.2421 by 30 or so pips until the news was confirmed as a relatively minor attack. Several civilians were run over.

One woman has been reported dead by a junior doctor at St Thomas hospital where several others are being treated who are reported to have severe injuries when a vehicle mounted the pavement and subsequently drove on and crashed into the gardens of Parliament. 

The assailant was a supposed middle-aged Asian man who left the car holding a seven-inch knife that he used to stab a policeman before being shot down, injured and arrested. There could be one other man still at large who escaped and ran away from the scenes - this is still unconfirmed. A strange package was in the car and bomb-disposable teams are dealing with it. 

GBP/JPY levels

GBP/JPY is range bound on the 138 handle within a bearish trend from the 144 handle and late January highs. 142 is a key upside target after 140.80 and 140.60 channel resistance. The 200 EMA on the 4hr chart at 140.30 guards bullish attempts to the 141 handle. To the downside, 138.20 guards aforementioned lows ahead of 136.50 2017 lows.