FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels - January 25, 2011

The GBP/JPY is still developing corrective wave 4 of medium term uptrend - colored royal blue in the chart. On smaller scale this wave consists of A-B-C subwaves with potential subwave C still developing - colored red in the chart. The targets of the downmove are Fibonacci retracements of 128.29-132.48, 130.65-132.32, and expansions off 132.48-130.65-132.32.

Supports:

- 131.68 = .382 retracement
- 131.49 = .50 ret
- 131.29 = .618 ret
- 131.19 = contracted objective point (COP)
- 130.49-38 = confluence area of objective point (OP) and .50 ret
- etc.

If the price reverses up the nearest resistances will be Fibonacci expansions off 128.29-132.48-130.65, 130.65-132.32-131.67.

Resistances:

- 132.70 = COP
- 133.24-34 = confluence area of COP and OP

Overbought/Oversold

Assuming that the medium term trend is up but the wave down is corrective it's preferable stand aside until impulse wave 5 manifests itself.

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