• Although EOD chart suggests some bearish candles such as 'spinning top' appear on GBP/JPY's on uptrend rallies, this should not be deemed as reversal as leading oscillators moving in convergence with the stagnant range 194.363 to 192.288 from 5-6 trading days. And in addition to this, even though slow stochastic reaches overbought zone there was no trace of %K line crossover as bulls were not ready to give up the rallies.
  
  Hedging Perspectives:
  Outlook: Sideways or slightly bullish
  
  
• As a result of above technical observation we look ahead for slight dips in the near future but uptrend holds stronger.
  
  
• It has been closely monitored the UK's fundamentals and its currency fluctuations, uptrend on GBPJPY is intact and but we also reiterate any necked positions are not advisable at this juncture as big event is underway. A few days ago Pounds trading against Indian rupee was strategized and this has resulted in a stiff hedge and a safe attractive profitability for traders.
  
  
• We therefore recommend "call ratio spread" as the pair is likely to remain either sideways or slightly downwards in near future and bullish in medium terms in our view.
  
  
• So, Buy far month In-The-Money 0.50 delta call option and sell more near month Out-Of-The call option at a higher strike price. Buying call spread in addition to selling more necked call options constitutes this hedging position.
  
  
• The portion should ideally be constructed in the ratio of 1:2 or 1:3.
  
  
• Use shorter expiry on shorts side and abundant time for long side.
  
  
• One can get benefitted from probable price falls in coming days by leveraging advantage through shorts side using near month contracts.
  
  
• Breakeven will be at:  short strike price + difference in strike price + net credit.