Guest Commentary: MarketVisionTV - GBPJPY - Time to Intervene against Intervention?!
The reversal form above 130 did indeed prove corrective to provide the last leg of the Intervention Style C leg in the famous Spiral Analogy. The question then is how far can it extend before we sell.
Since Sterling Yen hit the 116.85 equality target it has been correcting the decline from 140 in a three legged rally. With A at 127.20 and B a deep retest of the lows it now need to finish a 5 wave C leg and therefore a possible correction, if not the first leg of a major recovery.
All we need is new highs ideally to spike the 130.85 resistance to the 5=1 131.35 target before a loss of minor of 129.20 confirms that it has topped for new weakness beyond 126.70 and 125.20. Failure though to reverse through 129.20 in the next 48 hours or a rally through 131.80 pitchfork resistance suggests an aggressive and fitting blowout to the 5=1.618 x1 target of 134.25 that coincides with the C=1.618A target. Possibly more than just coincidence.
Further Videos and Commentaries are available from www.MarketVisionTV.com or @EdMatts on Twitter
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.