GBPJPY was worth the wait... but what next?

Good evening ladies and gentlemen

I hope you all had a wonderful weekend and managed to continue that into the start of the week with a great day in the market. We were spoilt here in London and around The UK with some beautiful weather and hope you were blessed with the same where ever you maybe.

So our currency pair over the last week was the GBPJPY and we were waiting for a certain setup to materialise and with some patience and persistent it did, with a move of over 350 pips today.

Below is the monthly chart and we can see that a recent 123886 in a long term down trend at the possible end of a period of retracement may have had an influence. Is a convergence or divergence necessary if we are following the trend?

Below is the daily chart which confirms the move we were waiting for. The 123886, the figure, the divergence and the candlestick were worth their weight in gold and you would have been handsomely rewarded if you had purchased your tricket for the ride. Stochastics also got in on the act!

The question now is how long can we expect this reversal. Is this a temporary resistance held by the figure or will we see a retest in the future and a possible break. Below is the 1 hr chart and early signs look interesting including an interesting candlestick at the end of play today. Day Walkers may be grateful for the fruits of their labour for the day and may chose to tighten stops if they haven't chosen to do so already?! On the contrary, the VI seems like it is holding strong!?

I will leave it to do your own analysis to determine your next moves! Good luck!

Alright Rich. Yeah I had a sound weekend mate. You?

The answer to your riddle is A Few Good Men?! I haven't seen it but my cousin has!

My riddle is "But Someday we ought to be able to.... as it has already begun!" Which film? Now this is difficult but a classic none the less!

Till tomorrow

Abundance is your Birth Right

Zaheer Anwari