FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels - January 21, 2011

The GBP/JPY is moving within corrective wave 4 of medium term uptrend - colored royal blue in the chart. The targets of the downmove are Fibonacci retracements of 128.29-132.48, 130.65-132.24, expansions off 132.48-130.65-132.24.

Supports:

- 131.63 = .382 retracement
- 131.44 = .50 ret
- 131.26 = .618 ret
- 131.11 = contracted objective point (COP)
- 130.41-38 = confluence area of objective point (OP) and .50 ret
- 129.89 = .618 ret

If the price reverses up and moves above 132.24 the nearest resistances will be Fibonacci expansions off 125.47-129.41-128.29, 128.29-132.48-130.65.

Resistances:

- 133.24 = COP
- 134.66 = expanded objective point (XOP)
- 134.84 = OP

Overbought/Oversold

Assuming that the medium term trend is up but current wave is corrective it's preferable to wait until wave 5 manifests itself by breaking above 132.48, therefore stand aside in the meantime.

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