Feb 5: GBP USD - Nearing ITD 1 low

Just to reiterate that we are near ITD 1 low time zone. In the past three ITD cycles (I circle them), ITD 1 was due at 0 days, 3 trading days, and 6 trading days after the red line. In the current cycle, we are currently at 5 trading days after the red line. It will probably be due either today or Monday of next week.

Feb 5: USD JPY - ITD 1 Inverts

Waves of risk aversion swept the market today. USD and JPY are the biggest beneficiary. I am stopped out of the USD JPY trade at break even.

In last Friday's USD JPY Delta update, I said that there's a possible ITD 1 inversion but I am leaning towards no inversion and a rally from 89.127. That's obviously not the case here. Below is the ITD chart.

Currently there's no indication that ITD 2 low has been due at 88.563 (the low today). With MTD 8 due late compared to previous cycles, there's a possibility that the higher time frame LTD is travelling down, and therefore we may see more Yen strength in coming weeks.

Feb 2: GBP USD - Medium Term Trend is likely DOWN

We had a break of 1.5895 yesterday, the key level that I mentioned before. This proves that MTD 9 high has arrived at 1.6457. Looking at the MTD chart, we could see that MTD 9 to MTD 10 move in the past two cycles was 30 - 40 days. In the current cycle, the move from MTD 9 high (1.6457) to yesterday is only 14 days, and therefore it's likely that MTD 10 low won't be due for a while and that medium term trend is still DOWN

In the lower ITD timeframe, we should soon find an intermediate bottom (ITD 1 low due on average Feb 3). From there, we would move up to ITD 2 high due on average Feb 15 if there's no inversion. However, since the higher time frame MTD is still DOWN, we will most likely get one more low at ITD 3 low before MTD 10 low is due.