Weekly Report 04 -08 / 01 / 2010
The weekly chart for the GBP/JPY pair offers an ideal [IM] structure with completed 4 waves earlier. Thus, we believe that it's presently forming the second internal wave of the grand fifth with targets at 154.30 and might reach 155.85 zones, followed by resuming the downside rally to form the internal third wave of the above mentioned fifth. Thereby, we believe that the pair is to move upwards during this week. Note that, the movements might be slow as a nature for the corrective waves.
Trading range for the week is among key support at 135.40 and key resistance at 159.35.
The general trend is to the downside as far as 167.40 remains intact with target at116.00.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair from 149.35 targeting 154.30 and stop loss below 145.60 might be appropriate.|