FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, September 8, 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 was confirmed on 128.64 break. However from a minor perspective this wave is being corrected.

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), 131.65-129.24-129.79.

Supports:

- 128.04 = contracted objective point (COP) off daily waves; reached already (!)
- 127.38 = objective point (OP)
- 126.70 = РћР
- 125.89 = expanded objective point (XOP)

The targets of the corrective upside movement are Fibonacci retracements of 131.65-127.89 and expansions off 127.89-128.88-128.04.

Resistances:

- 129.33 = .382 retracement
- 129.64 = XOP
- 129.77 = .50 ret
- 130.21 = .618 ret
- 130.63 = super expanded objective point (SXOP)

Overbought/Oversold

The Detrended Oscillator is in the overbought area. Assuming that the prevailing trend is still down, it's advisable to seek for topping signals to enter short against one of the Fibonacci resistances listed above.