FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, November 12, 2010

GBP/JPY is developing daily wave C - colored royal blue in the chart. On a smaller scale there's corrective wave B (colored red) within the daily impulse wave.

The targets of the corrective downmove are Fibonacci retracements of 129.82-133.22.

Supports:

- 131.92 = .382 retracement
- 131.52 = .50 ret
- 131.12 = .618 ret

In case the price resumes the longer term uptrend the nearest resistances will be Fibonacci expansions off daily A-B waves 126.43-131.99-129.82.

Resistances:

- 133.26 = contracted objective point (COP)
- 135.38 = objective point (OP)

Overbought/Oversold

The Detrended Oscillator has breached the previous peak down and now is firmly establishing itself below the zero level - that confirms the corrective wave of large degree. Would stand aside until the medium term uptrend resumes.

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