FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels - April 1, 2011

The GBP/JPY is developing impulse subwave C (colored orange red in the chart) within impulse wave C of medium term uptrend - colored magenta in the chart. The immediate resistances are Fibonacci expansions off 122.49-133.04-130.18, and 130.18-133.76-132.38.

Resistances:

- 134.21 = super contracted objective point (SCOP), already hit (!)
- 134.59 = contracted objective point (COP)
- 135.96 = objective point (OP)

If the price reverses down the immediate supports will be Fibonacci retracements of the wave up from 132.38 - this wave is not developed yet.

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 (15-20 pips below the current price) or into the oversold area (40-50 pips to go).

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