Guest Commentary: Dream Trade on GBPJPY Continues to Deliver Pips!

DailyFX

* Sterling Yen continues to follow an Analogy with previous price action and an almost incredible sequence of moves.

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Guest_Commentary_Dream_Trade_on_GBPJPY_Continues_to_Deliver_Pips_body_GBPJPY2009.png, Guest Commentary: Dream Trade on GBPJPY Continues to Deliver Pip...

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.

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