The release of the minutes from the last Bank of Japan meeting did damage to the Japanese Yen despite a cautionary tone. This suggests to me that upward potential in this currency pair is very limited and that we could be on the verge of a price action reversal which is why I have taken a short position in the GBPJPY.

I think we could see some sideways trading inside of its resistance level, but that the risk is definitely to the downside. Should we breach 190.000 I will add to my short position. I think the sell-off will come on the back of weakness in the British Pound rather than strength in the Japanese Yen.