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.    

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