GBP/JPY spikes on stop hunting, Brexit poll

GBP/JPY has taken off aggressively, moving over 80 pips in the iliquid transition from New York close to the Tokyo opening, with stop loss hunting behind the move, which has also been assisted by the latest Brexit polling.

Cynical stop hunting move

GBP/JPY found buying interest at the 157.00, from where a buying campaign was initiated for what was thought to be a potential test of 157.50 round umber. However, reported stop loss orders at 157.75 seem to have definitely acted as a magnet for buyers, which together with EURGBP stops triggered, has resulted in what appears to be a somewhat cynical move at this time of the day.

Latest Brexit poll GBP positive

The latest Brexit latest poll (ORB) saw 55% want in, 40% want out, an outcome which should be perceived as GBP positive, although by now it is well known that margin error in these type of opinion polls can be significantly high.