Is this the bottom or just a pause in the downtrend?

Cable set up a round number and Multi Point Reversal at 1.99 and promptly kept on falling.

However, the correction has set up a measured Fib move, is in the region of the 50% Fib and has also a symetrical time relationship with last two declines.

I' now looking at both scenarios, a resumption of the downtrend, if Friday's low is taken out - or a recovery and a new run up if 19660 holds and the downtrend is broken.

Take a look at the video here

Cable moves ahead strongly

Yesterday gave a useful move from its top, but the move today really got moving.

The interest rate differential together with uninspiring economic data out of the US got behind Cable today making it the best mover of the big four.

The overnight range gave the biggest hint of all and then Cable just moved on up from first thing this morning. It was highly tradeable with several 'add in' zones during the day. The big question now is 'will it take out the 3rd Jan high at 19750'? if so, we could see an attempt at $2.00!

And Cable makes its move...

19700 was going to be a struggle to overcome and this mornings inflation figures dissappointed the Cable bulls.

However, the Fibonacci Grid predicted the potential top and students from last Wednesdays course would have established the potential using the Grid and several other lead indicators.

Today there are key US figures out at 1.30pm UK time that could change the picture but for now the Cable bears are back in control.

It's Non Farm Payrolls Day and the Yen made its move

NFP day usually brings plenty of excitement. Unless you like cold sweats and palpitations it might be a good idea to go play golf today!

The US employment figures are very widely watched and the ADP figures earlier in the week showed a large decline in jobs that the market shrugged off. It could be different today, particularly as the US$ has been so heavily bought this week. Look at the Euro for clues this morning on the run up to 1.30pm.

The overnight Yen move continued the trend and although the year on year monetary base figures at 11.50pm yesterday suggested contraction. Clearly a YEN adjustment is taking place right now and how far it will go is anyones guess.

The Yen bucks the strong US$ trend

Whilst the US dollar has strengthened explosively over the last two days, the Yen is going its own way.

Later tonight, around midnight UK time, the year on year Japanese money supply is reported. Lets see what the figures will bring.

The market seems to have decided money supply is increasing, hence a pick up in growth that just might lead to another rate hike - remember what happened last year when rates were allowed to tighten together with finance minister approval - the Yen shot up by over a 1,000 pips!

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