Casual 2000 pips boys
Updated
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
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