The pound is back in favour big time today (hooray).
GBP/JPY has run up 200 pips since opening levels to 153.59.
A while back I posted about looking for trades that could be out of sync with other crosses. This might just be one of those opportunities. USD/JPY is still looking heavy although the flight from 100 is not as severe as one might expect.
If cable fails to hold on to gains and USD/JPY breaks below 99 then we could see a swift reversal in the pair. With data light for the rest of the day I’m toying with taking a short at 153.50 with a stop around 154.10. I’ll want to see USD/JPY nearer the 99 level with cable still on it’s highs before entering.
