FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, September 7, 2010

Pound/yen is still developing daily downtrend within wave C (colored light green on the chart). Within this wave we have a set of A-B waves (colored magenta) and wave C developing. The latter will be confirmed on 128.64 break.

The targets of the downside movement are Fibonacci expansions off 137.75-128.77-133.59 (daily A-B), 133.59-128.64-131.65 (hourly A-B - the magenta wavws), and 131.65-129.82-130.64, 130.64-129.24-129.79 (waves 1-2 and 3-4, colored yellow).

Supports:

- 128.81 = objective point (OP, reached precisely!)
- 128.59 = contracted objective point
- 128.39 = OP
- 128.04 = COP
- 127.68 = expanded objective point (XOP)
- 126.70 = РћР

In case the price turns up the nearest resistances will be represented by Fibonacci retracements of the downwave starting from 131.65 - this downwave will be formed on 129.79 break.

Overbought/Oversold

The Detrended Oscillator is oscillating around the zero level. Assuming that the prevailing trend is down it's reasonable to look for topping signals against Fibonacci resistances (not yet developed). Therefore stand aside. The nearest overbought area is 60-70 pips above the current price.