GBP/JPY - The ideal 147.00 target is now within reach

GBP/JPY - The ideal 147.00 target is now within reach

GBP/JPY - The ideal 147.00 target is now within reach

GBP/JPY - The ideal 147.00 target is now within reach

GBP/JPY - The ideal 147.00 target is now within reach

GBP/JPY - The ideal 147.00 target is now within reach 

The ideal target near 147.00 is now within reach.

The cluster of calculation that yields the 147.00 target indicates that this should be a support to be reckoned with. The most important calculations are the 61.8% corrective target of the rally from 116.82 to 195.88, which is seen at 146.80. Calculating the target for wave (v), the 38.2% target of the distance traveled from the top of wave (i) at 195.88 to the bottom of wave (iii) at 151.63 subtracted from the top of wave (iv) yields exactly 147.00.

The bottom of wave 4 of the rally from 118.77 to 174.85 is seen at 147.06, so we should expect support at 147.00 to be a force to reckoned with and likely being able to terminate the long term correction for a new impulsive rally that ultimately will take out the 2015 top at 195.88.

When a 1+ is highlighted in the right hand corner, more charts is available, in this chart-pack 4 charts can been seen. To see the other charts, click on the chart, which blows it up and in the center part at the bottom a control panel will be highlighted. Use the arrow to see the additional charts.

GBP/JPY - Bottom to be found between 156.02 - 156.21

GBP/JPY - Bottom to be found between 156.02 - 156.21

GBP/JPY - Bottom to be found between 156.02 - 156.21

GBP/JPY - Bottom to be found between 156.02 - 156.21 

The decline from the 163.89 high has been relentless, but it's only part of an expanded flat correction and once the low is found a new strong rally higher should be seen. 

The low should be found in the 156.02 - 156.21 area. At 156.21 we have the magic 70.7% corrective target of wave [i] (I know that the 70.7% corrective target isn't a Fibonacci number, but it's seen more often holding back corrections to be a mere coincident). the 156.02 target is the limit for wave five of the small ending diagonal that has developed over the last couple of days. As the name "ending diagonal" says it marks the termination of the move and once finished a sharp reversal is expected.

The first indication of a bottom being in place is a break above minor resistance at 157.24, while a break above 158.01 confirms the low for a strong rally higher in wave [iii]. This rally will eventually take us back above the 163.89 top and longer term much more upside is expected.  

When a 1+ is highlighted in the right hand corner, more charts is available, in this chart-pack 2 charts can been seen. To see the other chart, click on the chart, which blows it up and in the center part at the bottom a control panel will be highlighted. Use the arrow to see the additional chart. 

 

GBP/JPY - Inverse S/H/S bottom completed for a measured rally higher to 174.13

GBP/JPY - Inverse S/H/S bottom completed for a measured rally higher to 174.13

GBP/JPY - Inverse S/H/S bottom completed for a measured rally higher to 174.13 

I have been tracking the inverse S/H/S bottom for a while now and with today's close above the neckline resistance near 162.00 the formation is now completed for a rally higher towards the measured target at 174.13. The S/H/S target is just below the February wave [iv] high at 175.02, so do expect this area will put up a decent fight, but it should only be a matter of time before this resistance is broken too and the rally continues higher towards 180 and 188 on the way higher. 

Ultimately a break above the late June 2015 higher at 195.88 is expected. 

GBP/JPY - Top in place at 191.96

GBP/JPY - Top in place at 191.96

GBP/JPY - Top in place at 191.96

GBP/JPY top in place at 191.96 

The rally from the 116.82 low in mid-September 2011 has likely just ended a five wave rally at 191.96 and a correction of the entire rally should now be expected. We still need a break below support at 188.52 to confirm that an important top has been found at 191.96, but already upon a break below the support-line near 189.25 will be a strong indication of a top being in place at 191.96.

The last part of the rally in wave 5 became a bit odd as it could be counted as an impulsive five wave rally, but it could as well be counted as an ending diagonal and especially the final part of the rally from 185.93 became clearly overlapping indicating a endning diagonal was developing. With a break below the ending diagonal support-line, we should expect a move back to the origin of the ending diagonal, which will call for a move lower to at least 185.93 within half the time it took the ending diagonal to develop. If the entire rally since the 174.85 low was part of an ending diagonal, then the downside target becomes 174.85 within a month time.    

Today's Free Elliott Wave Analysis: GBP/JPY - Moving lower towards 169.45

GBP/JPY moving lower to 169.45

GBP/JPY moving lower to 169.45

We have finally seen the break below the channel support-line at 171.35, which confirms that wave C lower to at least 163.28 longer term.

We saw the top of the impulsive rally from mid-January 2012 at 117.26 at 174.85 in early January 2014 and has since seen an expanded flat correction unfolding. Wave B of this correction, did break slightly above the origin of wave A and therefore this correction is an expanded flat. Wave C should at least see a decline to 163.28 where wave C will be equal in length to wave A and wave C should unfold in an impulsive manner (five wave decline).

Short term we should see a break below 170.52 call for a decline to 169.45, but that should just be a minor stop on the way lower towards 163.28.

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Thomas
2014-05-28
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2014-08-11
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2014-05-27
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