FX.co ★ GBP/JPY Elliott Wave Count for April 11, 2012

GBP/JPY Elliott Wave
For the last few weeks we could observe the strong downward movement in the GBP/JPY pair. Yesterday during the European session we could observe the descending movement from 100EMA at 130.10 level to the 128.25 level. Therefore, during the New York session the GBP/JPY pair continue to go in a bearish mood and we could see the price touching 127.80 support level.Today during the early Asian session the price retested the 127.80 level and started pushing towards 50EMA resistance line. We are expecting to the GBP/JPY pair's low today. Presently we are at the end of 3 wave (coloured pink). In accordance with our wave rules and taking into account that the wave 3 will retrace 161.8% of wave 1, we can define the potential targets with Fibonacci extensions (133.33-130.10-133.20); the Take Profit at 126.84 (200% of wave 1). For Stop Loss we can use the resistance level at 129.00.

Support and Resistance levels
(S3) 126.33 (S2) 127.23 (S1) 127.78 (PP) 128.68 (R1) 129.58 (R2) 130.13 (R3) 131.03

Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why Short positions at level 127.80 with Stop Loss at 129.00 and Take Profit at 126.84 are recommended