Originally Updated: 06:57am
Currency Pair: GBP/JPY
Sentiment: Bearish
Market focus:
In today’s trade set up we will be focussing on short term selling opportunities on the GBP/JPY.
Fundamentals:
After a very disappointing GDP number from Japan the markets are now potentially facing a scenario where members of the Government start to lose faith in the famed ‘abenomics’ programme, which is designed to get the recovery back on track. This could make the election a big risk event for the markets and create uncertainty which could trigger at least some limited safe haven flows which of course leads to the purchase of JPY. The GBP is suffering from some negative sentiment after last weeks inflation report and this combination of things could give us a short term opportunity to profit.
Technicals:
We have a nice confluence zone at 182.60-182.65. This should offer short term resistance for any pullback.
Stop loss could be placed at 183.35
Take profit target: 181.70
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