Long GBPJPYFundamentals:- we had a strong risk on trading day today which caused the JPY to remain range bound. The GBP has some important economic releases due out this week including wage data and CPI both of which the BOE are looking at to tighten monetary policy. ING believe there is upside potential for wage growth and I tend to go along with that scenario as many business increased wages because of the minimum living wage increasing.
Technicals:- The GBP/JPY has been stuck in a downward channel for a while with recent upside from the bottom support line. A rejection from the upper trend line looks to be weak and a retest is on its way. If this breaks then the path should be clear up to the higher resistance line
buy:-14725
stop loss:- 14600
take profit:- 15000
