FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels - January 31, 2011

The GBP/JPY is still moving in wave C of daily degree (colored light green in the chart). But break below 129.49 will end this wave. At this moment the targets below the current price level are Fibonacci retracements of 125.47-132.64.

Supports:

- 129.90 = .382 retracement - already hit (!)
- 129.06 = .50 ret
- 128.21 = .618 ret

If the uptrend resumes the nearest resistances will be Fibonacci retracements of 132.64-129.75, and expansions off 129.49-132.64-129.75.

Resistances:

- 130.85 = .382 ret
- 131.19 = .50 ret
- 131.54 = .618
- 131.70 = contracted objective point (COP)
- 132.90 = objective point (OP)

Overbought/Oversold

Assuming that the medium term trend is still up it's preferable to use oversold readings of the Detrended Oscillator or its cross below the zero to consider long positions. However to start considering long position break above at least 130.38 is needed (previous high), which will terminate the wave 132.64-129.75.

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