FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, June 21, 2010

The pound/yen is now trading in the flat 135.94-133.51. The breakout of the flat will show the direction of the future intermediate trend. In case the price continues to the downside, we have wave B which has already reached .764 retracement (135.37). The targets of wave C are Fibonacci projections off 135.94-133.51-135.47 and retracement points of 130.40-135.94.

Price targets below the current level:

- 133.17 = .50 retracement
- 133.04 = objective point (OP)
- 132.52 = .618 retracement
- 131.71 = .764 retracement
- 131.54 = expanded objective point (XOP)

In case the flat is broken to the upside the targets will be Fibonacci expansion points off 130.40-135.94-133.51, 133.51-135.47-133.90, and 133.90-135.17-133.94.

Resistances:

- 135.86-99 = confluence area of OP and XOP
- 136.93 = contracted objective point (COP)
- 137.07 = XOP
- 137.26 = super expanded objective point (SXOP)

(Read more about EWA and Fibonacci levels)

OB/OS levels

According to Detrended Oscillator the market is highly overbought. And though the prevailing trend is up, one should wait for a tradable retracement to get into a long position.