FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels - April 5, 2011

GBP/JPY is moving within corrective wave 4 of medium term uptrend - colored red in the chart. This wave in its turn is part of larger wave C - colored magenta in the chart. The immediate supports are Fibonacci retracements of 132.38-136.03, 130.18-136.03.

Supports:

- 134.64 = .382 retracement
- 134.20 = .50 ret
- 133.80-77 = confluence area of .382 and .618 retracements
- 133.11 = .50 ret
- 132.41 = .618 ret

If the uptrend resumes the immediate resistances will be Fibonacci expansions off 122.49-133.04-130.18, and 130.18-133.76-132.38, and also 132.38-136.03-135.10.

Resistances:

- 136.70 = contracted objective point (COP)
- 137.36 = COP
- 138.17 = expanded objective point (XOP)

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 (10-15 pips below the current price) or into the oversold area (30-40 pips to go).

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