The exchange rate risk of this topic lies in the depreciation of the pound when the payment is recovered three months later. At the same time, when the money received is converted into Japanese yen for local circulation, the Japanese yen appreciates. Then the idea of hedging should be to short the pound and make more yen.

1.5 USD/GBP is an indirect exchange rate, and the exchange rate is positively related to the value of GBP. So sell the exchange rate of "USD/GBP" in the foreign exchange market;

120 JPY/USD is the direct exchange rate, and the exchange rate is negatively correlated with the value of JPY. Therefore, the "yen/dollar" exchange rate is still sold in the foreign exchange market.

The scale of hedging depends on hedging instruments, futures, options or option futures.