FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels for May 24, 2011

GBP/JPY is still moving within corrective wave 4 of medium term downtrend - colored royal blue in the chart. This wave has A and B subwaves (colored magenta) and the latter has A, B and C waves of still smaller degree - colored red in the chart. The targets of the upmove are Fibonacci retracements of 137.03-130.26, and expansions off 130.26-133.16-130.74, 130.74-132.96-131.25.

Resistances:

- 132.62 = contracted objective point (COP)
- 133.47 = objective point (OP)
- 133.64 = confluence area of OP and .50 retracement

If the price keeps declining the immediate supports will be Fibonacci retracements of 122.49-139.93, and expansions off 139.93-132.90-137.03, 137.03-130.26-133.16, 133.16-130.74-132.96, 132.96-131.25-132.26.

Supports:

- 131.20 = COP
- 130.55-54 = confluence area of two OP's
- 130.00 = OP
- 129.49 = expanded objective point (XOP)
- 129.16 = .618 ret
- 129.04 = XOP
- 128.98 = COP

Overbought/Oversold

Assuming that the medium term trend is down but a corrective wave up is developing it's preferable to stand aside or try longs when the Detrended Oscillator gets below the zero level (current prices) or into the oversold area (25-40 pips below the current prices).

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