As I predicted commodities, both real ones: silver, oil as well as commodity currencies such as Australian dollar recovering. So, you could already be in a long position both in silver and aud/usd or aud/jpy. 123 pattern provided you a nice opportunity to go long above point 2 both in silver (discussed a few days ago) and aud/usd (look at the chart below).
Gbp/jpy is reluctant to move. Most probably it will patiently wait for the data from Great Britain. I indicated the level for possible breakout yesterday. If you want to see it on the chart you should read my yesterday’s post. One thing that we can clearly see from current trends that leaders are commodities and currencies. You don’t have to have a university education to see that. While gbp/jpy is staying at its present levels (although the technical pattern is bullish) aud/jpy is going up.
In any move, the leader of the move always breaks out first. So, when you expect a downtrend (let’s say in Japanese yen) you want to see which pairs breakout first. You should put your money into those pairs, because they will bring you the biggest profit (follow the leader principle). In this situation aud/jpy, cad/jpy, nzd/jpy are the strongest, Australian being the leader among the three. I hope you understand what I mean. I will make a special post on the topic in the nearest future. For the time being watch what happens to British pound pairs on the 11th of May when news from England is released.
Read my previous post: