GBPJPY Lower
I think GBPJPY could move lower.
The GBP narrative took a fairly big hit last week with UK CPI falling lower than expected. This led to people pricing out some of the expected rate hikes from the BoE. I've seen some people thinking that the BoE is too priced and the UK CPI data last week helps with that. There are also some concerns about the UK economy going forward with such high interest rates, we could get some signal of this today although i doubt it would be this soon.
The JPY narrative also took a hit last week with the BoJ govenor implying that there will be no change to the policy this week. I think this is fine for the pair as not too many people believed they would change policy and some of that could be priced in now.
rate differentials are showing a very big divergence with the pair and suggest we should be lower.
Sentiment is extremely high which is a good indicator of a turn along with very high GBP longs.
Not trading/investment advise, feedback welcome!
The GBP narrative took a fairly big hit last week with UK CPI falling lower than expected. This led to people pricing out some of the expected rate hikes from the BoE. I've seen some people thinking that the BoE is too priced and the UK CPI data last week helps with that. There are also some concerns about the UK economy going forward with such high interest rates, we could get some signal of this today although i doubt it would be this soon.
The JPY narrative also took a hit last week with the BoJ govenor implying that there will be no change to the policy this week. I think this is fine for the pair as not too many people believed they would change policy and some of that could be priced in now.
rate differentials are showing a very big divergence with the pair and suggest we should be lower.
Sentiment is extremely high which is a good indicator of a turn along with very high GBP longs.
Not trading/investment advise, feedback welcome!
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