Daily Technical Update
May 21, 2010

GBP/JPY: Waiting for Wave Count Resolution of Correction


4H and 1H: This is a followup on yesterday’s GBP/JPY post. The question was whether wave V extension is the scenario. Today, we find that a bottom is forming, so the answer is no.
Instead, we are now looking at a developing correction. The 4H time-frame has a target for the correction to 133 area, or the 61.8% and 78.6% retracement level. This goes to wave (iv), which is the guide.
This is not an exact target, and the market can go up to 134 and satisfy corrective wave criteria.
Fan Yang
Currency Analyst
Commodity Trading Advisor

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