FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels for May 26, 2011

GBP/JPY is still moving within impulse wave C of long term uptrend. On smaller scale this wave has the following subwaves: impulse subwave C (colored royal blue in the chart) that consists of A-B and C subwaves of still smaller degree (colored magenta) and so forth with the subwaves colored red and then yellow.

The targets of the upmove are Fibonacci retracements of 137.03-130.26, 139.93-130.26, and expansions off 130.26-133.16-130.74, 130.74-132.96-131.25, 131.25-133.11-132.07, 132.07-133.67-133.23.

Resistances:

- 133.93-95 = confluence area of objective point (OP) and .382 retracement
- 134.22 = contracted objective point (COP)
- 134.44 = .618 ret
- 134.83-84 = confluence area of expanded objective point (XOP) and OP
- 135.08-10 = confluence area of XOP and .50 ret
- 135.43 = XOP

If the price reverses down the immediate supports will be Fibonacci retracements of the wave up from 131.25 - this wave is not developed yet.

Overbought/Oversold

Assuming that the medium term trend has reversed up it's preferable to 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.