TechnoMeter

• "Whereas continued Yen weakness was once a predominant expectation for the Bank of Japan, those prospects are looking much less likely after the December BoJ meeting. And in the case of the British Pound, we spent much of last year waiting for the end of the year for the inflation picture for the Bank of England to ‘come into better focus.’ Well, Super Thursday threw that wrench for a loop after the Bank took a decidedly dovish stance towards future rate hikes."
• "So we’ve seen a near complete reversal of fortunes. Sterling strength and Yen weakness are no longer looking that likely, and many traders are expecting the exact opposite."
• "All of this is fine and well, but it’s the chart that shows traders what matters most. And up until mid-December, there was still reason to keep on believing that the up-trend would return to GBPJPY. We looked at an aggressive top-side reversal setup two weeks ago based around this premise. At the time, GBPJPY had just run down to a six-year trendline that just happened to be confluent with the major psychological level of 180.00. There was also a Fibonacci level 20 pips below that batch of support that was the 76.4% retracement of the 2015 range in GBPJPY."
• "This is a great example of risk management at work. By eating a quick stop as soon as the trader knows that they’re wrong, they’re then free to embark upon new trends and fresh setups. Too many traders hold onto positions to simply prove that they were ‘right’ at some point in the past."

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