Guest Commentary: Is GBPJPY Too Good a Trade to Miss?
* Within broad 117-134 consolidation, Sterling Yen has potential to set another base 200 points higher than the previous 118.80 low.
* With clear resistance at 124.05, we have resold for the final spike down to 120.80.
* But a better risk return will come from buying the drop or a break of 124.05.
Sterling Yen remains very clear within the 117-134 consolidation following the dream scenario of making higher lows each time. 116.80 118.80 and this time? Is 122 enough?
Well, following the trend sequence to 122 it was enough certainly to have covered shorts but the three wave and therefore seemingly corrective rally to beyond the 38.2% to the previous 124.05 high and daily trend resistance from 131.70 suggests caution. Indeed since Sterling Yen has now set a clear reversal point we have ventured short again for a loss of 122.85 and 122.00 to open up a potential spike down beyond the 61.8% of 121.45 for the ideal 120.80 backwards target highlighted on the daily perspective and also 200 pips higher again than the previous 118.80 low.
So simply we will cover shorts on this decline looking to buy new lows or a break of 124.05 for at least 125.85 but also that 127.85 confluence target also highlighted on the daily perspective.
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