#GBPJPY @ 160.453 bears eye on 159.00 level amid liquidity crisis. (Pivot Orderbook analysis)

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• GBP/JPY bears eye on 159.00 level amid liquidity crisis.
• BoE in discussion over Credit Suisse’s worsening situation.
• Global bond yields drop amid risk aversion; boost to Japanese yen.

The pair currently trades last at 160.453.

The previous day high was 164.14 while the previous day low was 159.21. The daily 38.2% Fib levels comes at 161.1, expected to provide resistance. Similarly, the daily 61.8% fib level is at 162.26, expected to provide resistance.

GBP/JPY has been plummeting from the 164.00 level as Japanese Yen demand surges. It has been a while since the Yen acted as a safe haven, with the US Dollar typically taking that role. However, falling US Treasuries are diminishing US Dollar demand, and as a result, the conventional safe-haven Japanese Yen is in high demand amid risk aversion.

Some headlines earlier in the Asian trading session suggested that the Bank of England (BoE) is in talks with its international counterparts regarding Credit Suisse’s worsening situation. Subsequently, remarks appeared from Credit Suisse proposing preemptive steps to resolve the liquidity crunch, either through a public offering of debt securities or by obtaining a CHF50 billion covered loan facility from the Swiss National Bank (SNB).

Amid the uncertainty surrounding Credit Suisse and Silicon Valley Bank, market participants are seeking government bonds as safe-haven assets, causing yields to fall globally. The falling yields are further boosting Yen demand in a risk-averse environment.

Meanwhile, unscheduled comments from former Bank of Japan (BoJ) Governor Kuroda hit the wires, stating that the central bank has implemented an effective, sustainable policy. In addition, Japanese Merchandise Trade Balance data revealed that yearly Import data for February came in at 8.3%, lower than the 12.2% expected, and Export data registered 6.5%, compared to the 7.1% expected. The directional bias for GBP/JPY is likely to remain on the downside amid a risk-averse environment.

Technical Levels: Supports and Resistances

GBPJPY currently trading at 160.21 at the time of writing. Pair opened at 160.89 and is trading with a change of -0.42 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 162.61, 50 SMA 160.8, 100 SMA @ 163.07 and 200 SMA @ 163.37.

The previous day high was 164.14 while the previous day low was 159.21. The daily 38.2% Fib levels comes at 161.1, expected to provide resistance. Similarly, the daily 61.8% fib level is at 162.26, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 158.68, 156.48, 153.75
• Pivot resistance is noted at 163.62, 166.35, 168.55

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