FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels - April 12, 2011

GBP/JPY has finished wave 130.18-139.93 - wave C of medium term uptrend, colored royal blue in the chart. And now corrective wave 4 is developing. This wave on smaller scale has A-B-C subwaves within it, and subwave C is still developing - colored orange red. The targets of the downmove are Fibonacci retracements of 130.18-139.93, 122.49-139.93, and expansions off 139.93-137.92-139.15, 139.15-138.10-138.50.

Supports:

- 135.90 = expanded objective point (XOP)
- 135.75 = super expanded objective point (SXOP)
- 135.06 = .50 retracement
- 133.90-89 = confluence area of .618 retracement and SXOP
- 133.27 = .382 ret

If the price reverses up the immediate resistances will be Fibonacci retracements of the waves down from 139.15 and 139.93 - these waves are not developed yet.

Overbought/Oversold

Assuming that the medium term is down it's preferable to open short positions when the Detrended Oscillator gets above the zero level (35-40 pips above the current prices) or into the overbought area (75-95 pips above the current prices).

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