Wednesday 18 April 2012

GBPJPY, Wednesday, April 18, 2012

Hi Traders,

The Yen seems to have issues against almost every currency, included the British Pound.
New trend up. Objectives: 134.800, 140.240, 145.480, 148.200.
Entry point: wait for the retracement to 38.2% or 50% in the 1hour chart.
Than entry only when you see a new bullish reversal candlestick.

DESCRIPTION

In the monthly chart below it's clear that we completed the very last 5 waves down plus a double bottom (near number 5).

This means that the major downtrend is over and it just reversed with a new rally up.

Note the vertical lines: it took precisely 11 years (132month) from low to low. We're likely to see something significant at the completion of the 144 month from September 2001 (12 years). 







The weekly chart below shows an imminent breakout on the upside given the 5 contact points of the blue channel. The number 5 (bottom right in orange) signals the end of the major trend down and the beginning of a new major rally.








Wave 2 unfolded in the daily chart below by means of 5 waves down, just on the 38.2% retracement line. It's now on the 23.6% line. The channel was touched 4 times and we expect a breakout on the upside.








The 4hour chart below shows the completion of the retracement wave 2 (in turquoise), given the Elliott Wave count over the minor waves. See also the 5 waves up. 







Finally the 1hour chart below shows that the chart could try a small leap up before starting the retracement down that should stop around level 128.700 (38.2%) or 128.400 (50%).






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