GBPJPY, Tuesday morning, August 5, 2008
These charts explore a pattern where the GBPJPY corrected in 3 waves since the high above 250 in July of 2007.
The final wave down seems to have a clearly definable impulsive nature, with an alpha-beta base, 221.26 (alpha) and 230.34 beta. This would project a 2.618 delta target around 206.57 and an extended 4.236 delta target at 191.88. The actual low on March 17, 2008 was 192.52, close enough for a move of over 3700 pips.
The second chart shows the "correction of the correction." Using the beta as the start of the impulsive move, and the actual low on March 17, the 61.8% retracement target is around 215.90. within 5 pips of the high on July 23 of this year.
Shown in more detail on a daily chart.
To be continued...