Société Générale recommend a GBP/JPY short

This is from a September 7 note

Société Générale recommend at GBP/JPY short at 182

  • Their profit target is 155
  • Their stop loss is a 197

SG's reasoning:

  • Says yen's undervaluation limits the potential for upside in the event that the Bank of England tightens faster or more than expected

The say there is considerable downside to the pair if

  • The UK economy slows
  • Fears of a Brexit return
  • Or if a resumption of risk aversion causes safe haven flows back into the yen

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Errr .... its not a day trade :-D

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