FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels - May 2, 2011

GBP/JPY is moving within wave C of medium term uptrend - colored magenta in the chart. Current wave C consists of 3 subwaves - A, B and subwave C is still developing - colored red in the chart. The targets of the upmove are Fibonacci retracements of 137.03-135.17, 139.93-132.90, and expansions off 132.90-135.87-133.99, 133.99-137.03-135.48.

Resistances:

- 136.10 = .50 retracement
- 136.32 = .618 ret
- 136.96 = objective point (OP)
- 137.24 = .618 ret
- 137.36 = contracted objective point (COP)
- 138.52 = OP
- 138.80 = expanded objective point (XOP)

If the price reverses down the immediate supports will be Fibonacci retracements of 133.99-137.03.

Support:

- 135.15 = .618 ret

Overbought/Oversold

Assuming that the wave of a larger degree is moving up it's preferable to open long positions when the Detrended Oscillator gets below the zero level (20-25 pips below the current prices) or into the oversold area (50-60 pips below the current prices).

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