FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels for November 1, 2011

GBP/JPY is developing impulse wave C (colored light green in the chart) of medium term uptrend from 116.91. Within this wave there are three subwaves (colored royal blue in the chart), and potential subwave C is still developing from 119.93. Within the latter wave there also three waves (colored magenta in the chart) with subwave C developing from 120.62. The targets of the upmove are Fibonacci retracements of 130.81-116.78, and expansions off 116.78-120.78-116.91, 116.91-122.58-119.93, 121.77-127.25-124.52.

Resistances:

- 127.38 = super expanded objective point (SXOP)
- 127.81 = .786 retracement
- 127.91 = contracted objective point (COP)
- 129.10 = expanded objective point (XOP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 121.77-127.25, 120.62-127.25.

Supports:

- 124.51 = .50 ret
- 124.02 = objecitve point (OP)
- 123.94-86 = confluence area of .50 and .618 ret
- 123.15 = .618 ret

Overbought/Oversold

Assuming that the major wave 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 (20-40 pips below the current prices).

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