TRY/JPY - Due to my prior call for the TRY to rally against EUR, the break above the long term trend line resistance in USD/JPY gave me the idea, that this potentially could be an interesting cross.
As can be seen on the chart above, we can count a five wave decline since the 98.70 high back in October 2007. Wave 5 down turned into an expanding diagonal, where we have some interesting relationships between wave i - iii and v as wave v became almost exactly equal in length to wave
i-iii. At the same time wave v also became 1.618 time longer than wave iii adding confidence in the possible double bottom scenario.
I'm looking for a test of the double bottom neckline resistance at 44.55 soon and if this resistance breaks we will be looking for a continuation towards at least 48.65, but longer term we should be looking for a rally into the area between 54 and 65.
The interest differential between TRY and JPY in the favor of TRY does make this a very nice cross to stay with for the longer term.
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