FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels for May 27, 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). Now a corrective wave against 131.25-133.78 is developing. The targets of the downmove are Fibonacci retracements of 131.25-133.78 and expansions off 133.78-132.61-133.49.

Supports:

- 132.77 = contracted objective point (COP)
- 132.51 = .50 retracement
- 132.32 = objective point (OP)
- 132.22 = .618 ret
- 131.60 = expanded objective point (XOP)

If the uptrend resumes the immediate resistances will be 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, 132.07-133.78-132.61.

Resistances:

- 133.93-95 = confluence area of objective point (OP) and .382 retracement
- 134.32 = OP
- 134.44 = .618 ret
- 134.84 = expanded objective point (XOP)- 135.08-10 = confluence area of XOP and .50 ret

Overbought/Oversold

Assuming that the medium term trend is up it's preferable to try longs when the Detrended Oscillator gets below the zero level (10-15 pips below the current prices) or into the oversold area (45-60 pips below the current prices).

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