We have provided two calls in Pound/Yen. One a bit over longer horizon.
Sell Pound against Yen at 168, with stop loss around 189 and target at 121.
The other one is more recent:
To sell Pound at 163, with stop loss around 166 and target around 155.
With influential London mayor, Boris Johnson, siding with the exit group, Pound has failed to gain over the deal secured by David Cameron and EU member states. Pound today dropped to as low as 159.6 against Yen.
Upon the move, we choose to modify our short term call's stop loss and add an interim partial target. New stop loss to be held at 164 and interim profit booking level will be 157.5 area. 50% profit booking is advised and rest can be carried to reach 155 or fresh positions can be initiated after profit booking at correction near 160 area.
We also revise our long term stop loss at 175 area from 189 mark.
Since equity is rising, Yen is not being much help to the pair. Once equity start faltering again, we expect the pair to pick up more downside momentum.
On the longer horizon, if UK votes to exit the union, we expect our longer term call would be reach earlier than expected.
