GBPJPY likely a good position trade for the downside.
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The tricky part is scaling into this trade. There is immense technical and fundamental pressure on this pair at the moment. Statistically the GBP pairs still seem very bearish over the long term and the GBPJPY in particular. The pair currently sits below the DWM PPs and the DWM 10/200 EMAs signaling more downside. Topside we don't think the theme is broken until we see 164s revisited and minimum downside targets would be around the 156 handle. Understanding initial size of the position, and how to scale slowly into this trade both on retracements or in the event it keeps dropping without any pullbacks at all, is really the most pressing question.
The tricky part is scaling into this trade. There is immense technical and fundamental pressure on this pair at the moment. Statistically the GBP pairs still seem very bearish over the long term and the GBPJPY in particular. The pair currently sits below the DWM PPs and the DWM 10/200 EMAs signaling more downside. Topside we don't think the theme is broken until we see 164s revisited and minimum downside targets would be around the 156 handle. Understanding initial size of the position, and how to scale slowly into this trade both on retracements or in the event it keeps dropping without any pullbacks at all, is really the most pressing question.
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Risk Disclaimer: The content published by this account is for demonstration purposes only and should never be considered financial advice.