LONG GBP/JPY @133.80
Very tough to ignore a currency that has been so beaten down and that pays a nice positive carry. The cross has dropped sharply by more than 10 big figures over the past 2 weeks and with daily studies so overextended, we like the idea of our newly established long position following the break back above Tuesday’s high. The break above Tuesday’s high marks an end to a series of 9 consecutive daily lower highs, and 9 consecutive negative closes. The drop of 9 days also coincided with a fibonacci time sequence that would also suggest that the market pullback has stalled for now. POSITION: LONG @133.80 FOR AN OPEN OBJECTIVE; STOP 131.80.
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