While I am not a die-hard fan of FXCM's Yen Basket (much prefer NAFTA + Japan vs. "the World"), this index/basket is clearly working on an turn here. It is still relatively week but has likely put the worst behind it. Now, it is all about acceleration which, judging from past behavior, ought to gain significant momentum. Again, I'd suggest to use this "basket" as...
Reasons for my analysis: 1) Close to ideal Gartley harmonic pattern as shown on chart, current price reversed at exactly Gartley's ideal D point. 2) All JPY group currency pairs correlating with JPY weakness (fresh) (including USDJPY;AUDJPY;EURJPY;GBPJPY;CADJPY) 3) Strong buying force (Demand Zone showed a big bullish candle) 4) Double bottom W shape with V...
- watch price at 200 ema - 200 ema may act as resistance due to decrease in momentum at that area - price may reach 129.800 and pullback towards the mR1 before going up - if price breaks past the 200 ema and 129.800, buy to t1 - mR2 - breakout from R1 suggests price may continue to scale up after pullback from either the 200 ema or 129.800 price
Place a sell stop for GBPJPY at 151.50 with stop losses at 152.50 and aim for 148.50 in the short term. I'm net bullish JPY and selling GBP given the technical developments in the daily and 4hr charts
Buy Yen and if prices drops to 112.50, the better.