The psyche is a self-regulating system that maintains its equilibrium just as the body does. Every process that goes too far immediately and inevitably calls forth compensations… In this sense we can take the theory of compensation as a basic law of psychic behaviour.
Jung grounds dream compensation in a general law of psychic self-regulation, analogous to bodily homeostasis, and identifies the compensatory relation between conscious and unconscious as the foundational rule of dream interpretation.
, The Practice of Psychotherapy: Essays on the Psychology of the Transference and Other Subjects, 1954thesis