GBPJPY: This pair poised for a drop / BoJ Governor vote
We've seen recent strength from JPY in preparation for the announcement of a new Governor, with nominations expected in the next few days. The currency rose this past week when it was 'leaked' that Kazuo Ueda could become the next Governor, and this could lead to a change in monetary policy.
Anyone following me will note I'm weak on GBP and generally bullish on JPY in my ideas - I don't think BoE have room for hikes that can compete with other majors, BoJ do (and they seem to have managed their economy incredibly well post-pandemic).
BoJ certainly has room for manoeuvre, and I'm expecting strength from the yen this year. With inflation levels higher than target, interest rates low and potentially a new Governor that is no stranger to voting for monetary tightening when needed, the landscape is there for shorting the GBPJPY.
I think this pair is due a big drop, we may see the rise up to 164 to form a rising wedge, but my expectation is a fall before it reaches that point, and a big one at that.
Anyone following me will note I'm weak on GBP and generally bullish on JPY in my ideas - I don't think BoE have room for hikes that can compete with other majors, BoJ do (and they seem to have managed their economy incredibly well post-pandemic).
BoJ certainly has room for manoeuvre, and I'm expecting strength from the yen this year. With inflation levels higher than target, interest rates low and potentially a new Governor that is no stranger to voting for monetary tightening when needed, the landscape is there for shorting the GBPJPY.
I think this pair is due a big drop, we may see the rise up to 164 to form a rising wedge, but my expectation is a fall before it reaches that point, and a big one at that.