FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels for July 22, 2011

GBP/JPY is now moving within corrective wave 4 of long term downtrend - colored light green in the chart. Within this wave there are A, B and C subwaves with subwave C from 126.63 still developing (colored magenta in the chart). The latter wave also has its subwaves - A , B and C colored red in the chart. Subwave РЎ is still developing from 126.70.

Now the targets of the upmove are Fibonacci retracements of 132.30-124.87, 130.82-124.87, and expansions off 124.87-128.11-126.63, 126.63-127.84-126.70, 126.70-127.53-126.99, 126.99-128.21-127.69.

Resistances:

- 128.44 = contracted objective point (OP)
- 128.55-59-63-66 = confluence area of .618 and .50 retracements, COP and expanded objective point (XOP)
- 128.91 = objective point (OP)
- 129.16 = super expanded objective point (SXOP)
- 129.46 = .618 ret

If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 126.63 - this wave is not developed yet, so no supports are available.

Overbought/Oversold

Assuming that the medium term trend is now up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (current prices) or into the oversold area (25-35 pips below the current prices).

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