Weekly Report 11-15 / 01 / 2010

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The GBP/JPY pair is still forming the second internal wave of our captured Elliott cycle. This wave is expected to reach 155.80 zones, in order to complete the allover upside corrective structure [A-B-C], before resuming the Elliott sequence as seen on our provided weekly chart. Being carried above SMA 50, arguesthat the outlook is to the upside over short term basis.

Trading range for this week is among key support at 141.50 and key resistance at 155.80.

The general trend is to the downside as far as 167.40 remains intact with target at116.00.

Support147.60146.20145.50145.00144.15
Resistance149.35150.00151.00152.30153.40
RecommendationBased on the charts and explanations above our opinion is, buying the pair from 147.40 targeting 153.30 and stop loss below 143.80 might be appropriate.