My take on GBP/JPY -Stronger GBP longterm

We were going through our daily analysis series when one of our new trainees shared with us his experience with the gbpjpy pair and how his trades disappointed. I immediately thought we should take a closer look at the pair. On the monthly time frame, one clearly sees it has been an overall downtrend since August 2016 (Brexit vote). Throughout this time, it has been ups and downs but overall downwards.
My advice and opinion is this:
The pandemic’s effect is more or less the same accross the board so will be discounted in the overall analysis. Japans economy has more or less been the same over the past 2-4 years whilst UK has been very unpredictable with no certainty on many fronts. However with the brexit sealed including so many other unknowns made known, I believe the only direction for the gbpjpy pair now is upwards on the long term. There is a saying you will only go back upwards when you have hit rock bottom. I believe the pair already did that and will only go upwards in the long term. (buy and hold)

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