Snapshot: GBP/JPY trades at 212.59, down 0.58% on the session, as UK 2Y yields plummet 12bp. Attention will turn to any BOE commentary on the recent exchange of letters regarding the Asset Purchase Facility. No UK data today.
- Watch for a break of 210.78 intraday low to confirm further downside momentum.
- Risk of intervention chatter remains high if Yen weakness persists, especially if GBP/JPY moves towards recent highs.
Bias into NY: Bearish GBP/JPY, driven by the sharp fall in UK yields and aided by DXY weakness. A break of the 210.78 level would signal further downside towards 210.00.