GBP/JPY – 148.05
New strategy :
Stand aside
Position: –
Target:Â –
Stop:-
As sterling recovered after falling to 146.95 earlier this week, suggesting further consolidation above this level would be seen and although corrective bounce to 148.60 cannot be ruled out, reckon previous support at 149.00-05 would limit upside and price should falter well below 149.90-00 and bring another decline later.
On the downside, below 147.30-35 would bring retest of 146.95 but break there is needed to signal the fall from 152.85 top is still in progress for retracement of recent upmove to 146.60-65 and then 146.00, having said that, loss of momentum should limit downside and previous support at 145.25 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.

