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GBP/JPY: Short down to 1.2500 or lower. As the Brexit referendum moved in favor of Britain leaving the EU – this has put incredible pressure on the GBP. Most likely all GBP denominated pairs will fall, however we believe the GBP/JPY is likely to become the most volatile. Statistically speaking, the GBP is now below all major D/W/M moving averages to the downside, and the JPY has surpassed all major D/W/M moving averages to the upside. While intervention is a worry for the JPY – we believe the Japanese would at least wait or further upside on the JPY before moving forward. Additionally, we also think any moves to intervene would also likely be quickly seen as opportunity to traders.