FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels, December 1, 2010

GBP/JPY has developed 5 waves of medium term downtrend (colored red in the chart) and is now moving in wave A of potential A-B-C corrective cycle. The targets of the corrective upmove are Fibonacci retracements of 134.19-129.33 (waves 1 to 5), 132.10-129.33 (wave 5), 131.35-129.33 (subwave C within wave 5).

Resistances:

- 130.58 = .618 retracement
- 130.72 = .50 ret
- 131.04 = .618 ret
- 131.19 = .382 ret
- 131.76 = .50 ret
- 132.33 = .618 ret

If the price resumes the downtrend and breaks below 129.33 we'll get a wave extension, and the targets below will be Fibonacci retracements of 126.43-134.19, and expansions off 134.19-130.83-132.10.

Supports:

- 129.39 = .618 ret
- 128.74 = objective point (OP)

Overbought/Oversold

The Detrended Oscillator is moving below the zero level in a choppy manner which confirms the consolidation that may continue above 129.33. However to open longs a wave up of a larger degree is needed with a retracement, therefore now the best tactics is to stand aside.

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