GBP/JPY drops to 19-day low, tests 50% Fib support

• GBP/JPY fell to 19-day low on yen demand. 
• The pair has retraced rally from May 29 low to June 7 high. 

The GBP/JPY pair fell to a 19-day low of 145.68 in Asia as escalating US-China trade war and the resulting risk aversion increased demand for anti-risk Yen. 

As of writing, the pair is trading at 145.77 - down 0.43 percent on the day and could find acceptance below 145.66 (50% Fib R of May 29 low - June 7 high) if the major European equity indices report massive losses in response to escalating US-China trade tensions. 

Also, the drop to 19-day low seen today only bolsters the already bearish technical setup - The pair failed to take out the key falling trendline (drawn from April 17 high and April 26 high), the 5-day and 10-day moving average (MA) are trending south in favor of the bears. 

GBP/JPY Technical Levels

Resistance: 146.1 (resistance on hourly chart), 146.52 (50-hour MA), 146.95 (100-hour MA). 

Support: 146.66 (50% Fib R of May 29 low - June 7 high), 145.07 (61.8% Fib R of May 29 low - June 7 high), 144.99 (March 2 low).