GBP/JPY...again

The largest movement for the second day in a row was the GBP/JPY. The pair erased yesterday’s 400 pip gain by crashing down on news that BNP Paribas froze three investment funds with positions in US subprime mortgages. France’s largest bank prevented withdrawals after claming it couldn’t fairly value investors’ holdings.

After the news was released, the pair at its highest point of 243.96 around 2:15AM began its downward spiral. It didn’t stop until 7 hours later when it hit its lowest of 239.01 marking almost a 500 pip loss.