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The Japanese Yen continues to weaken after completing the 3 wave move under $USDJPY 108 last week, yen weakness has accelerated as the British Pound gets back to Brexit night levels. GBP demand has taken $GBPJPY up to 151.54 after triggering large stops which in turn has seen $USDJPY to take out the 111 stops to  trade 7 week highs of 111.32. Right now we have the push me - pull you affect live and well in the pound and yen.

Much of the carnage is the large safe haven plays put on by large hedge funds and proprietary players of long yen, short pound which is reflected in the $GBPJPY. The tenure of this trade has run it's course for now as the yen weakened on more North Korea threats and the pound strengthened on another London train terror attack. From here stops were taken out on a failure of previous safe haven price moves.

Gann Squaring of move, stop run and pullback highlights waves

GBPJPY 15 9 15

We have seen firstly a rise in the pound from 128 to 1.35 as interest rates are pressured from inflation around 4% in Britain and then dollar yen got a boost from risk on plays after Hurricane Irma was not as destructive as first estimated.  Since the S&P 500 has notched up more all time highs. The Nikkei 225 closed up 0.52% at 19,909.50 just off its's highs of 19933.40 reflecting the weaker yen affect on the export sector.

These have been vertical unwinding moves and we go to our longer term clouds for guidance.

Monthly gives a clear picture of the coil and Brexit impact.



 Trade Smart

KnovaWave @knovawave



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