Trading the Trend: long GBP/JPY
UK inflation unexpectedly rose to 10.4% year-on-year in February, the Bank of England is expected to hike its rates, and the Bank of Japan is pursuing its dovish stance.
With UK inflation unexpectedly rising to 10.4% year-on-year in February and the Bank of England expected to hike its rates at Thursday’s monetary policy meeting while the Bank of Japan pursues its dovish stance, we would like to go long GBP/JPY at ¥162.50 with a stop-loss at ¥158.55 and an upside target at ¥169.00.
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