Sterling Yen is a significant market not just because it remains very clear but because of what it implies for other markets!
* Within a likely 127-134 consolidation top, Sterling has a window for another run at the highs.
*The drop into our Triple Confluence Target area around 129 is a potential base for this second rally.
* We have bought short term and will look to sell the rally but surely $JPY and EURJPY are even better buys?!
Sterling Yen is quite significant as its maintained real clarity. Yes we remain medium term bearish but continue to trade a very typical consolidation top.
Following the A wave to the 127.30 38.2% target, the strong constructive rally to 131.80 promised a larger rally later to retest the high. Well we have patiently waited for the spike through the seemingly pivotal 130.20-50 to a triple confluence target area of firstly c=1.618 at 129.15 the 61.8% of 12890 and the projected channel support exactly at 129.00. We have waited and bought for a rally back through 130.20-50 to signal a retest of 131.80 and what should seem a very bullish break of the 131.80 interim high to the outstanding 133.45 high possibly 133.80-134.25 and probably the pitchfork median line.
Our Stops? Its so tempting to raise them in line with the pitchfork and therefore at 128.90 but we will only look to reverse longs at the highs or below the key 127.10 support. Perhaps where it is more significant is given our bearish cable and bullish euro sterling outlook.. is what its saying about $ yen and euro yen.
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