Three candle reversal sets up further GBP/JPY gains
GBP/JPY is the major winner today, up a whopping 424 pips. It's the extensive of a fantastic rally this week that started at 154.00 and has extended more than 650 pips.
The three-candle reversal in the weekly chart also breaks the downtrend since December.
My firm belief is that the Brexit vote will fail. Lately, polls are showing the 'remain' side making steady gains as politicians and thought-leaders relentlessly spread fear about the economic consequences of leaving the EU.
The BOJ is a major risk but if the polls continue to slide and Kuroda delivers another round of easing, we could easily have another week like this one.
