Sterling Yen is correcting an uptrend that is destined as high ultimately as high as 134.25 as highlighted on the daily perspective. But it has satisfied the near term uptrend (in a five wave trend sequence) with the spike of the 129.20 target. If it started a larger correction then with the drop to 126.70 (a five wave to the 38.25 of the smaller uptrend) there is a very good reason why it is back at highs. It could be a deep B wave retest similar to previous but a more likely reason is a potential B wave high to 130.55 in other words new highs within the corrective process. This is likely for four reasons. 1) Alternates nicely with the simple correction to 119.55 2) Creates the possibility of important divergence with Euro Yen staying below the equivalent 119.90 high 3) Provides the perfect backwards target for a c=1.618a target of 125.80 coinciding with 38.2% retracement of the larger uptrend. 4) Reflects a currency that is very bid in a strong uptrend that briefly lacks momentum. So as it breaks to new highs but fails to sustain itself over 130.85 a then we can look for a loss of the uptrend support at 127.90 now not just to provide 126.70 but a spike lower to 125.80 to end the correction. And in so doing create the basis of sterling yen's formation the expanding wedge top or bottom.
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