FxWirePro: Recovery provides bright entry for short term opportunity in Pound/Yen

We, at FxWirePro fundamental are bearish on the pair since it crossed below 186 mark, so recent uptick can hardly make us bullish even in the shorter term. Our calculations for longer term has called for Pound Yen to reach 121 mark. However, due to longer term nature of the call, we expect, it might take more than six months to reach the target and will include many a swings. These conditions may not be suitable for shorter term traders.

However, today's correction in Pound/Yen, after yesterday's massive fall has raised an excellent opportunity for short term traders to enter the market.

Our fundamental theme for this call is same as our longer horizon call. We expect, several risks like lower wage growth, financial market turmoil, low inflation and moreover possibility of Brexit to weigh on Pound, whereas Yen to benefit from these conditions.

Trade idea -

• Sell Pound/Yen at current price 163.4 with stop loss around 166.25, recent high and with target at 155.
• Kindly note, this is our short term call and despite being in same direction, should not be confused with longer horizon call of 121.