FX.co ★ GBP/JPY Elliott Wave Count for January 23, 2012

Market Overview
GBP/JPY has been trading on bullish market for the last 2 weeks, today on the opening of Asian session we saw this pair slightly upmoving. This currency pair has a strong Resistance Level at 119.86, breaking which we will see the British pound higher during next few days.

Important News

(GBP) MPC Member Posen Speaks
(JPY) Monetary Policy Statement
(JPY) Overnight Call Rate
Support and Resistance
(S3)118.92 (S2)119.21 (S1)119.39 (PP) 119.68 (R1)119.97 (R2)120.15 (R3)120.44

Elliott Wave Analysis for GBP/JPY
GBP/JPY finishes corrective wave (B) at 117.23 and has started 5 wave move for next wave a of the bigger (C) wave.
According to our wave rules and assuming that wave 3 is over, we can see GBP/JPY lower before wave 5 has not started. If we assume that wave 4 will retrace 38.2 or 50% of wave 3, we can project our entry point with our Fibonacci retracement (117.48-119.86) to 118.96.

Trading Forecast
Based on Elliott Wave Rules we can expect the trend to go higher during the next few days. That is why we can come to a conclusion that we should open Long position at 118.96 with Stop Loss at 118.20 and Take Profit at 120.00.