Sterling Yen

On Friday i felt that the Euro$ had still some upside and this proved to be the case. The chart shows that the Euro$ can easily get to the 38% retracement of the last daily range at about 1.3870.

I am however looking at Sterling yen this morning. The trade has not fired as yet but it has the kind of risk to reward ratio that excites me.

The daily chart of Sterling Yen shows a reverse divergence setup short. On the h4 it is clear that the market is charting out a rising wedge pattern which has stopped at a 50% retracement of the last range. This is a dangerous and very tricky animal and I am not discounting another push up before a probable fall.

I am waiting for a confirmation pattern from the bar chart. The target is about 500 points south.

I will post if I observe a signal.

Good Trading