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

The GBP/JPY is developing corrective subwave B (colored orange red in the chart) within impulse wave C of medium term uptrend - colored magenta in the chart. The immediate supports are Fibonacci retracements of 130.18-133.76 and 122.49-133.76.

Supports:

- 132.39 = .382 retracement
- 131.97 = .50 ret
- 131.55 = .618 ret
- 129.45 = .382 ret

If the uptrend resumes and the price breaks above 133.76 the immediate resistances will be Fibonacci expansions off 122.49-133.04-130.18.

Resistances:

- 134.21 = super contracted objective point (SCOP)

Overbought/Oversold

Assuming that the medium term is now up it's preferable to look for longs when the Detrended Oscillator gets below the zero level or into the oversold area (current prices), or better yet - when the price hits the Fib support at 132.39.

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