GBP/JPY – 141.50
Recent wave: Medium term low formed at 120.50 and (A)-(B)-(C) major correction has commenced with (A) leg ended at 148.45, hence wave (B) is unfolding for retreat to 131.00-10.
Trend: Near term up
New strategy :
Stand aside
Position: –
Target:Â –
Stop:-
Although sterling has rebounded again after finding support at 140.10 and near term upside risk remains for gain to 142.00, break of resistance at 142.10 is needed to confirm recent upmove from 135.60 low has resumed and extend further gain to 142.50, then towards 142.90-00 which is likely to hold from here due to near term overbought condition.
In view of this, would not chase this rise here and would be prudent to stand aside for now. Below 140.80-85 would prolong consolidation and risk weakness to 140.30-40 but said support at 140.10 should contain downside. Only break there would suggest a temporary top is formed, bring correction to 139.50-60 but price should stay well above support at 139.20 (Friday’s low), bring another rise later.
Our preferred count is that larger degree wave V with circle is unfolding from 251.12 with wave (I) 219.34, (II): 241.38 and wave (III) is subdivided into 1: 192.60, 2: 215.89 (23 Jul 2008) and wave 3 ended at 118.87 earlier in 2009. The correction from there to 162.60 is wave 4 which itself is a double three and is labeled as first a-b-c ended at 151.53, followed by wave x at 139.03, 2nd a ended at 162.60, 2nd b at 146.75 and 2nd c leg of wave 4 ended at 163.00. Therefore, the decline from 163.00 to 116.85 is now treated as wave 5 which also marked the end of larger degree wave (III), hence wave (IV) major correction has commenced for retracement of the wave (III) from 241.38 and upside target at 183.95-00 (50% Fibonacci retracement of the wave (II) from 241.38) had been met, a drop below 160.00 would suggest wave (IV) has ended at 195.85, bring decline in wave (V) for initial weakness to 130 (already met) and 120.

