FxWirePro Short Term Outlook: another 800 Pips Drop in Pound Likely Against Yen
Since Bank of Japan (BOJ) decided to stay hold in its April meeting Yen has strengthened about 800 pips against Pound, however our calculation matrix suggests that run may not be over and Pound may drop another 800 pips against yen in the short run.
After two days of massive sell-offs, post BOJ, Pound tried to post some recovery on first trading day of the month but over the last two days that recovery failed and Pound is off to a new post-BOJ low. Until yesterday, majority of the gains had been shouldered by Yen but now Pound has started playing its part. With Dollar recovery yesterday and weaker data coming out of UK, traders have once again started fresh selling of Pound, reversing the counter trend.
So we expect Pound to shoulder next part of the drop in the pair. Since Dollar, itself is much weaker despite yesterday’s comeback and may go for a deeper correction, it makes Yen a much better choice to short Pound in the near term.
In the longer term, we are short on Pound against Yen at 168, with targets around 121. Check out the story here - http://www.econotimes.com/FxWirePro-Long-term-outlook-%E2%80%93-Pound-might-drop-to-121-against-Yen-149460
Anyone who missed out on that or prefer short term trading may go for Pound short against Yen even at current price of 154.6 with targets around 146 area.