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

GBP/JPY has finished upwave from 130.26 to 135.11. According to wave count on larger timeframes that was corrective wave B of long term downtrend - colored plum in the chart. Now the price stands at the beginning of potential impulse wave C. On smaller timeframes this wave has A, B and C subwaves in it - colored orange red in the chart. The targets of the downmove are Fibonacci expansions off 135.11-133.45-134.33.

Supports:

- 131.64 = expanded objective point (XOP)

If the price reverses up the immediate resistances will be Fibonacci retracements of 135.11-131.94.

Resistances:

- 133.15 = .382 retracement
- 133.53 = .50 ret
- 133.90 = .618 ret

Overbought/Oversold

Assuming that the medium term trend is down it's preferable to try shorts when the Detrended Oscillator gets above the zero level (5-10 pips above the current prices) or into the overbought area (35-50 pips above the current prices).

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