FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels - April 13, 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 four subwaves within it, and corrective subwave 4 is still developing - colored orange red in the chart. The targets of the upmove are Fibonacci retracements of 139.93-135.62 and 139.15-135.62.

Resistances:

- 137.27-38 = confluence area of .382 and .50 retracements
- 137.78-80 = .50 and .618 retracements
- 138.28 = .618 ret

If the downtrend resumes the immediate supports will be Fibonacci retracements of 130.18-139.93, 122.49-139.93, and expansions off 139.93-137.92-139.15.

Supports:

- 135.06 = .50 retracement
- 133.90-89 = confluence area of .618 retracement and SXOP
- 133.27 = .382 ret
- etc.

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 (current prices) or into the overbought area (current prices).

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