[B]My picks:[/B] Short GBP/JPY
[B]Expertise:[/B] Fundamentals Combined With Technicals
[B]Average Time Frame of Trades:[/B] 1 Day - 1 Week
Last Thursday I mentioned that I was looking for an opportunity to sell GBP/JPY near either 157.80/158.00 (falling intraday trendline and 38.2% fib of 162.62-154.97) or 159.66/160.00 (6/3 highs and the 61.8% fib). It just so happens that GBP/JPY made a failed test of 159.50 during the European trading session on Friday, so I took a chance and sold it at the start of the US trading session. I will be looking to add to the position if we see a break below 155.00, which would mark the neckline of a head and shoulders formation.
All told, I think broad declines in FX carry trades will take the JPY crosses lower, as risk appetite could remain unstable in light of the uncertain outlook for the financial markets.