Shaking the market in the European session was the Pound Sterling currency which depreciated significantly to see prices plummet on the major charts.
The market is reacting to the unfavorable development of the Brexit negotiations between the European Union (EU) and the UK.
Both parties reportedly failed to reach an agreement on the final negotiations. The EU explains the deal becomes complicated when the UK does not want to follow the negotiated direction.
European Commission President Ursula von der Leyen reportedly made a statement on the issue.
The volatile reversal has pushed the Pound Sterling to trade weak again after soaring yesterday.
If you look at the price movement on the GBP / JPY currency pair chart, the price has plunged around 130 pips as of 5 pm local time and still has momentum to continue lower.
Prices that reached their latest high of 3 weeks have plummeted below the 135,500 level due to the depreciating Pound.
The continued decline will test the weekly support level of 135,200 before lowering.
Next, the RBS (resistance become support) zone at 134.400 will be the target of the price target.
If the price jumps again above the Moving Average 50 (MA50) barrier level on the 1 hour price movement, the increase is likely to return to the high of 136,600 reached today.
