By: John Ursus
Timeframe: W1 Recommendation: Short Position
Entry Zone: 170.40 – 174.40
Take Profit Zone: 157.40 – 160.40
Stop Loss Zone: 175.40 – 177.40
The GBPJPY has enjoyed one of the strongest rallies over the past twenty trading months. The rally lasted over 5,000 pips without a major correction. A much stronger economy in the UK has powered the British Pound ahead against the Japanese Yen which has been faced with a monetary policy focused on easing. The return of Prime Minister Abe and his economic policies have been extremely bearish factors for the Japanese currency.
Price action has been trading sideways over the past six months which suggest that the current rally may be losing steam and a correction could be on the horizon. A correction would be a healthy development and ensure the overall uptrend remains intact as the longer picture for the GBPJPY remains bullish.
