Trade # 23: GBP/JPY Long

I last posted about the GBP/JPY here. I mentioned that I would look to go long on a correction. That correction has come to fruition and I will go long @ 187.40, stop @ 184.30. My target is 215 or so. This carry trade should provide nice interest.

Notice the 5-wave rally from 184.46. I believe that this is Wave-A for a correction up to 215. Price has since dropped to correct this 5-wave structure, in what appears to be 3-waves so far. I am buying around the 78.6% fibo and Wave-2 low, which should support prices at least temporarily. My stop is below 184.46 on the belief that this level will hold.

I think after today's stock market drop, lawmakers will realize that the broader economy is suffering from the financial crisis, so a surprise package would make sense at this point in the near future. This should make GBP/JPY rally strongly