It is time for GBPJPY!

While the majority of traders expect miracles from GBPJPY, we have an excellent opportunity to take advantage of the situation to make money on it!

Basic arguments:

At present, the asset is traded at the fair forward rate, which means that the price is far from fair. Despite this, we still can project it according to the money value and can see that it goes down. However, it is also possible that the price will come back to 139, which is now can be considered as fair.

Technical arguments:

This asset remained in a downward trend for quite a long time. Moreover, as a result of influential expectations from GBP, it is still strong. On the other hand, the current price is close to the minimum of this year, and it looks like that the downward trend will slow down a bit, so it will be the time to expect the growth of GBPJPY.

Analysis of big traders:

Picture 1. A price chart of GBPJPY with the index of "big traders" positions for the period of 25.05.2019 - 25.06.2019.

As we can see in picture 1, the current positions of big traders reached a local maximum. However, the whole trend indicates that big traders significantly reduced positions for this instrument, which provokes additional risks for GBP.

Forecast:

To underline this analysis, we can forecast that on the next week we can see a correction close to the level of a fair price - 139 GBPJPY.

I.e., we forecast movement UP.

We suggest you use the following indicators for comfortable trading:

• RSI
• ROC

Positions ratio. To keep the level of risk moderate, try to keep this ratio: 4 trades UP: 3 trades DOWN.