Analysts at Societe General are out with a strong view on GBP/JPY
UK BRC sales data show a like-for-like fall of 1%, weaker than expected but consistent with other measures, notes SocGen.
"Our economics team released their latest Global Economic Outlook overnight and one notable feature is a forecast of UK real GDP growth for 2016 at a soggy 2%. The UK has been helped by the boost to real incomes from High Street disinflation and as that fades, growth is likely to slow," SocGen adds.
"With 'Brexit' concerns likely to return, and with the country's current account deficit a danger at times of market stress, there isn't much beyond short-covering to boost sterling. Use this bounce to sell GBP/JPY," SocGen advises.
The pair has climbed more than 400 pips this week to 184.75 but has been under heavy pressure since late-August, falling from 195.00.
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