FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, July 6, 2010

According to wave count GBP/JPY is still developing wave C of the intermediate downtrend (colored royal blue on the chart). The targets of this downside movement are Fibonacci expansions off 136.00-133.01-135.23, 135.23-131.23-133.84, 133.84-132.72-133.59 and retracement points of 131.23-133.84.

Price targets below the current level:

- 131.78 = expanded objective point (XOP), reversed within 1 pip
- 131.55 = .764 retracement
- 131.37 = contracted objective point (COP)
- 130.66 = super expanded objective point (SXOP)

In case the price keeps advancing the nearest targets will be Fibonacci retracement points of 133.59-131.79, 135.23-131.23, and expansions off 131.23-133.84-131.79.

Price targets above the current level:

- 133.40 = COP
- 134.29 = .764 retracement
- 134.40 = objective point (OP)

Overbought/Oversold

The Detrended Oscillator is extremely overbought, which means that in case of topping signals it is possible the price will keep trending to the downside. 133.17 (.764 retracement) is the level to watch for.