British Pound Outlook Unclear versus Japanese Yen
<Forex trading crowds have remained aggressively long the British Pound against the Japanese Yen since the GBPJPY crossed below the ¥128 mark. The sharp shift gave us contrarian signal that the pair could continue lower. Yet in the past week we’ve seen long positions fall by 6 percent as shorts are roughly unchanged.
We’re not yet prepared to call for a larger GBPJPY turnaround amidst fairly one-sided crowd sentiment, but the important bounce in price waters down our previously bearish bias.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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