Yo Guppy just broke below a consolidation!

Feeling a little bit of FOMO from all of the anti-risk moves?

Listed here are levels it is best to be careful for should you’re betting on more losses for the pound and more gains for the yen:

GBP/JPY 15-min Forex Chart by TV

In case you were too busy plotting your start-of-month trading goals, it is best to know that credit rankings agency Fitch just downgraded the U.S.’ sovereign credit grade from AAA to AA+.

While this won’t give “DEFAULT!!!” vibes, it might limit the demand for U.S. assets and USD.

In fact, the news that the world’s largest economy has been downgraded isn’t sitting well with risk takers thus far today.

GBP/JPY, which has been trading inside a variety since earlier this week, has broken its range and has dipped to the S2 (182.23) Pivot Point levels.

The 100 and 200 SMAs on the 15-minute charts have also turned lower and will soon turn bearish with a crossover.

If the danger averse trading environment continues, or if traders avoid GBP-related assets ahead of this week’s BOE decision, then GBP/JPY could maintain its bearish momentum.

GBP/JPY could break below its current consolidation at S2 (182.23) and head for the 181.90 previous area of interest.

A little bit of intraday profit-taking, nevertheless, could also push GBP/JPY to revisiting the S1 (182.64) Pivot Point and broken range areas before more bears step in.

Watch how GBP/JPY interacts with the Pivot Point levels and the broken range support and resistance zones to get clues on the pair’s next direction!

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