FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, November 15, 2010

GBP/JPY is moving within a daily wave C which is colored royal blue in the chart. On smaller scale this wave C has a set of A-B-C subwaves with wave C still in development - colored red in the chart.

The targets of the upmove are Fibonacci expansions off 126.43-131.99-129.82 (daily waves A-B), 129.82-133.22-130.96 (subwaves A-B within C), and 130.96-133.54-132.91.

Resistances:

- 134.36-50 = confluence area - objective point (OP) and contracted objective point (COP)
- 135.38-49 = confluence area - two OP's

In case the price reverses down for a correction the nearest supports will be Fibonacci retracements of 129.82-133.56, 130.96-133.56.

Supports:

- 132.57 = .382
- 132.26-13 = confluence area of .50 and .382 retracements
- 131.95 = .618 ret
- 131.69 = .50 ret
- 131.25 = .618 ret

Overbought/Oversold

The Detrended Oscillator is flattening around the zero level confirming the consolidation, but since the prevailing trend is up it's preferable to wait for a retracement to a Fib support or when the price gets below the zero or in the oversold - 20-30 pips to go.

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