Sell GBP/JPY for target of 143.10 - Westpac

The analysis team at Westpac is recommending to sell GBP/JPY cross with the following parameters:

“Entry: Sell 100% at 146.25, Stop: 146.95, Target: 143.10”

Key Quotes

“Rationale:

• Softer headline and core CPI should limit speculation of growing dissent and calls for withdrawing accommodation within BoE's MPC
• The vulnerable UK government is facing problematic legislation and a weakening of its Brexit negotiation stance
• Independent surveys highlight downside risks to UK economy if consumption and Brexit negotiations are constrained
• GBP/JPY has again halted in front of 18 month highs (148.70) and retracement resistance (147.75)
• Media suggest that BoJ is set to alter its projections when it receives its economic update during its 19-20th July meeting
• Further declines in stock markets could trigger risk reduction and result in JPY gaining a safe-haven boost”