Technically GBP/JPY

Weekly

Clear head and shoulders was broken around 225.00 (which is also the 38.2% Fibonacci retracement of the overall move to the 250.00 level ending in June 2007). Coincidentally, the neckline is also exactly at the 38.2% retracement from the top of the head to current cycle low at 206.70. Doing price projections from the broken neckline we can target the following:

1. With the neckline at 225.00, and the top of the head at 250.00, the projected price target is down at 200.00.

2. With the neckline at 225.00, and the top of the shoulder at 240.00, the projected price target is down at 210.00 (Already achieved).

Oscillator features:

-	MACD is steeply pointing downwards with good angle and separation; histogram is now flat below -2.0.
-	Slow Stochastic is in oversold territory just crossing upwards.

 

Monthly Fib Resistance	61.8%	233.99
	50.0%	228.80
	38.2%	223.62
Monthly Fib Support*	0.0%	206.97**

* See Monthly Fibonacci levels for higher level price targets at lower levels.

** Low year to date.