Technically: rising wedge (bearish)
Fundamentally:
JPY short positioning overextended
JPY safe haven in the event of equity downturn
GBP strength keeps inflation low - BoE will not hike
Brexit uncertainty remains
GBP positioning not overextended - room for shorts to build
Sentiment
Speculative market sentiment is very bearish yen; underestimating possibility of yen strength in case of events like August 2015
Sentiment is neutral/bullish GBP
Trade structure
Short at spot.
Add to position when wedge is broken.
Add to position every 100-200 pips of downside, trail stop to profit
Scale out at 130-125 yen
Fundamentally:
JPY short positioning overextended
JPY safe haven in the event of equity downturn
GBP strength keeps inflation low - BoE will not hike
Brexit uncertainty remains
GBP positioning not overextended - room for shorts to build
Sentiment
Speculative market sentiment is very bearish yen; underestimating possibility of yen strength in case of events like August 2015
Sentiment is neutral/bullish GBP
Trade structure
Short at spot.
Add to position when wedge is broken.
Add to position every 100-200 pips of downside, trail stop to profit
Scale out at 130-125 yen
Trade active
150 pips in the bag
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.