A Big Bull against a Small Bull

While global risk-off attitude has weakened the position of each of these currencies on institutional balance sheets for a more diversified stance, the case for strong US and UK economies makes these the logical choice for long term currency safe havens. I am looking to hedge my USD/JPY and GBP/JPY positions because the carry trade has taken a breather for now. Yet, I cannot risk going long the Yen if/when a bounce in the price of oil happens has voraciously as I expect. Thus, I am taking a stronger stance on the buck by funding it with quid.

The only support comes from the range formed over the last month. If this breaks, there will likely be psychological or news based corrections rather than technical support to stop the downward motion. While moves this week are likely going to be on little volume due to the holidays, given the direction of this trend and the lack of support, shorts may have strong conviction.

I've taken a small short at 1.5530 to hedge my GBP/JPY position