GBP/JPY – 151.80
New strategy :
Stand aside
Position: –
Target:Â –
Stop:-
Despite rising to 152.85 yesterday, the subsequent retreat suggests consolidation below this level would be seen and test of support at 150.15 is likely, however, a firm break below there is needed to suggest a temporary top is possibly formed, bring further fall to 149.70-80, then towards 148.90-00, only a drop below there would add credence to this view, bring retracement of recent rise to 148.50 and then 148.00 later.
In view of this, would be prudent to stand aside in the meantime. Above 152.35-40 would bring another test of said resistance at 152.85 but break there is needed to signal upmove has once again resumed and extend headway to 153.00-10 and possibly towards 153.50-60, however, 154.00 should hold, risk from there has increased for a retreat to take place later.Â
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.

