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British Pound Expected to Fall Further versus Yen

Published 07/09/2015, 11:49 AM
Updated 07/09/2023, 06:31 AM
GBP/JPY
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GBP/JPY

A recent shift in British pound sentiment warns that it may continue lower versus the Japanese yen. The ratio of long to short positions in the GBP/JPY stands at 1.14 as 53% of traders are long—a notable contrast to last week when traders were heavily net-short. A contrarian view of crowd sentiment leaves us watching for continued weakness, and only a large shift towards GBP-selling would shake us from our contrarian bearish trading bias.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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