Guest Commentary: Dream Trade on GBPJPY Continues to Deliver Pips!
* Sterling Yen continues to follow an Analogy with previous price action and an almost incredible sequence of moves.
Despite the aggressive overshoot of the long awaited 127.85 target, Sterling Yen has reversed to encourage a continuation of the Dream Trade…an amazing sequence of levels and trades to manage a medium term climax.
Indeed following what appears to be an extended 5th wave blowout through 126.20 to 128.85, Sterling has reversed in what also appears to be a wave down to 126.20, the extension point.
This is perfect for two reasons:
- First, it is following classic theory that suggests a double retracement, a corrective recovery now to retest but fail the 128.85 high before the next more aggressive break down through pivotal 125.85 to 124.40 en route 128.80.
- Secondly, this would repeat the previous 133.45 top with a consolidation top before medium term weakness.
As such we have reduced shorts here looking to resell at the more cautious 127.85 coincidentally also the 61.8% and the 128.85 highs with stops still 129.20 as only this would extend further to the 78.6% at 130.35.
Further videos or commentaries are available from www.marketvisiontv.com or @EdMatts on Twitter.
Would you like to see more third-party contributors on DailyFX? For questions and comments, please send them to email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.