GBP/JPY on the rebound so far this morning

Over the past few days your attention was drawn to a leading analyst call, for the GBP/JPY to drop to 180. Well, earlier today the Pound took a step closer towards that target. The GBP/JPY fell further and set a new interim low at 187.65. The Pound had closed in the US last night at 188.29. The further fall today now sees the GBP/JPY drop by nearly 500 points since it was first flagged up here. However, it has now rebounded and that recovery has seen it reach a high so far at 188.87. It remains to be seen, if this rebound can extend further. For the most part all the price action seen so far today and yesterday too for that matter, was mostly due to the USD/JPY. The combination of the prospect of lower UK interest rates and the opposite now in Japan is the driver behind this partial unwinding, of what has been a long-standing and profitable GBP/JPY carry trade. The Pound is right now at 188.85