GBP/JPY – 145.10
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:-
Despite intra-day brief breach of 145.40, lack of follow through buying and current retreat suggest further consolidation would take place and weakness to 144.70-75 cannot be ruled out, however, break of support at 144.50-55 is needed to signal top is formed, bring further fall to 144.00, then test of support at 143.80 but reckon 143.40 support would hold from here.
On the upside, above resistance at 145.45 would extend the erratic rise from 143.40 low for a stronger retracement of the fall from 148.10 to resistance at 145.90-95, having said that, break there is needed to confirm the decline from 148.10 has ended, bring further subsequent gain to 146.30-35 but resistance at 147.10 should remain intact.
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.

