FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, August 17, 2010

Wave count show that this currency pair is developing a med term downtrend (colored magenta on the chart). However we're now standing in corrective wave 4. The targets of the upside movement are Fibonacci retracements of 137.75-132.78, 136.97-132.78 and expansions off 132.78-134.80-133.08:

- 134.33 = contracted objective point (COP)
- 134.88 = .50 retracement
- 135.10 = objective point (OP)
- 135.37 = .618 retracement
- etc, see the image

In case the price resumes its downside movement, the targets will be Fibonacci retracements of 130.80-137.75 and expansions off 137.75-135.46-136.97, 136.97-132.78-134.80:

- 132.44 = .764 retracement
- 132.21 = COP

Overbought/Oversold

The Detrended Oscillator is oscillating around the zero level. The indicator gives the nearest overbought some 60-80 pips above the current level. Assuming that the major trend is still down, it's good to seek topping signals to enter short.