GBP/JPY Elliott wave count and Fibonacci levels, July 12, 2010

According to wave count this currency pair is developing a weekly wave up. Within this wave we have an intermediate uptrend which is now being corrected. Wave B is colored magenta on the chart. The immediate supports are Fibonacce retracement points of 131.17-134.63 and expansions off 134.63-133.15-133.98

Price targets below the current level:

- 133.07 = contracted objective point (COP)
- 132.90 = .50 retracement
- 132.50-49 = confluence area of objective point (OP) and .618 retracement
- 131.99 = .764 ret

In case the price keeps advancing and breaks 134.63, the nearest targets of the upside movement will be Fibonacci retracements of 134.63-133.15, 136.00-131.17 and expansions off 131.17-134.63-133.15 Рё 130.40-136.00-131.17.

Price targets above the current level:

- 134.06 = .618 ret
- 134.63 = COP
- 135.29 = COP
- 136.61-77 = confluence area of OP's

Overbought/Oversold

The Detrended Oscillator shows that the market is nearing the extremely overbought area which is some 10-15 pips away, however this is the calculations for the current bar. As soon as the longterm trend is up, it's better to look for entries against significant Fibonacci supports - 133.07 (COP), 132.90 (.50 retracement).