Thursday, August 14, 2014
Elliott wave analysis of GBP/JPY - Channel support broken, calling for a decline to at least 163.28
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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