GBP/JPY keep selling unless trendline hurdle is breached

GBP/JPY daily chart

GBPJPY D1 (03-31-2016 0021).png

This could be a major sell opportunity and here is why

  • Latest poll in UK have shown sentiment is shifting favor of Brexit. This is bad news for GBP
  • I believe Fed is fooling markets and may retain hawkish tone and could actually move rates by June and that would hurt GBP more in the short-term, given the Brexit fears
  • Wobbly oil and hawkish talk from Fed could hurt stocks as well and this improve demand for JPY

On Chart, we see spot failing to take out falling trend line hurdle. So I would recommend traders to attempt selling GBP/JPY with small stops above trend line hurdle. The immediate downside tgt is 160.00 and 158.45.

Brek below 158.45 would put buy side arguments to rest and force buyers to unwind their positions leading to sharp sell-off to 155.00 levels.

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