FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels for May 31, 2011

GBP/JPY is still moving within impulse wave C of long term uptrend - colored light green in the chart. 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 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, 131.25-133.78-132.61, 132.61-133.62-132.98.

Resistances:

- 134.44 = .618 retracement (achieved)
- 134.61 = expanded objective point (XOP)
- 134.84 = XOP
- 135.10-14 = confluence area of .50 ret and objective point (OP)

If the price reverses down the immediate supports will be Fibonacci retracements of the waves up from 132.98 and from 132.61 - however these waves are not developed yet.

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 (40-50 pips below the current prices) or into the oversold area (70-80 pips below the current prices).

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