After yesterday's more dovish voting than expected at Bank of England's (BOE) monetary policy meeting and today's strong non-farm report has pushed pound lower, which broke key resistance against Yen.
Technically speaking, the move was somewhat expected given the bearish engulfing candle pound posed in daily chart against Yen. Pound is currently trading at 192.4 against Yen after breaking key resistance at 192.9 area.
Fundamentally speaking, Pound is likely to rise against Yen, given the hawkish outlook for Bank of England (BOE) and massive easing from Bank of Japan (BOJ).
However, in the short term selling pound against Yen might pose some profitable opportunity.
Trade idea -
- Sell Pound against Yen at current price of 192.4, with stop loss around 194 and 195 and initial target of 190.9 and 189.7as nest target.
