FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, November 11, 2010

GBP/JPY is moving within daily wave C (colored royal blue in the chart) which has been confirmed on the break of 131.99 - top of wave A. Now the targets of the upside movement are Fibonacci expansions off daily A-B waves 126.43-131.99-129.82, and subwaves within the daily C - 129.82-131.08-130.50.

Resistances:

- 133.26 = contracted objective point (COP)
- 133.81 = super expanded objective point (SXOP)

In case the price consolidates below 133.07 and reverses for a correction the nearest supports will be Fibonacci retracements of 129.82-133.07 (waves A-B-C - colored yellow), and 130.51-133.07 (wave C, now wave 4 is developing).

Supports:

- 132.09 = .382 retracement
- 131.83-79 = confluence area of .382 and .50 retracements
- 131.49-44 = confluence area of .618 and .50 retracements
- 131.06 = .618 ret

Overbought/Oversold

The Detrended Oscillator has made a huge peak above the previous ones, confirming the wave of larger degree has started. The consolidation around the zero level is an indication of flat (wave 4). Assuming that the prevailing trend is up it's preferable to take longs whent the price hits a Fibonacci support. The quality of such a retracement is better when the oscillator gets below the zero level or into the oversold - 40 pips to go.

Read more on how to apply Fibonacci studies to calculate price targets.