Analysts at MUFG Bank consider a good trade idea to short GBP/JPY around 131.85, with a target at 126.60 and a stop loss at 134.10. Key Quotes: “We still have a bias favouring yen strength and looking at currencies to seek GBP against we see JPY as a good option. The JPY has under-performed in recent weeks so the move weaker in GBP/JPY has been less than GBP weakness versus other currencies.” “Speculation on negative rates in the UK could spark selling in the Japan retail market where market participants have built substantial long positions. Declining yields outside of Japan is a key supporting factor for JPY and if speculation of negative rates in the UK persists it will increase downside pressure.” “We are conscious that short GBP is already a popular trade and this is the risk in this trade – that we are entering a crowded position. However, as highlighted above, negative rates in the UK would be a very different prospect for GBP when compared to negative rates for EUR, JPY, CHF and SEK. A far greater negative hit for GBP is likely.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/USD Price Analysis: The euro fails to break above the horizontal channel FX Street 3 years Analysts at MUFG Bank consider a good trade idea to short GBP/JPY around 131.85, with a target at 126.60 and a stop loss at 134.10. Key Quotes: “We still have a bias favouring yen strength and looking at currencies to seek GBP against we see JPY as a good option. The JPY has under-performed in recent weeks so the move weaker in GBP/JPY has been less than GBP weakness versus other currencies.” “Speculation on negative rates in the UK could spark selling in the Japan retail market where market participants have built substantial long positions. Declining yields outside of Japan… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
