FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels for February 27, 2012

GBP/JPY is developing impulse subwave C (colored royal blue in the chart) that is part of impulse wave A of a larger degree (colored light green in the chart) from 117.22. Within the former subwave there are also five waves of a still smaller degree (colored magenta in the chart), and impulse subwave 5 is developing from 125.41.

Now the targets of the upmove are Fibonacci expansions off 117.22-121.98-119.53, 119.53-123.11-121.62, 121.62-126.77-125.41.

Resistances:

- 130.56 = objective point (OP)
- 130.99 = super expanded objective point (SXOP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 125.41-129.71.

Supports:

- 128.07 = .382 retracement
- 127.56 = .50 ret
- 127.05 = .382 ret

Overbought/Oversold

The bigger wave is now moving up, so it's preferable to try long positions when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (15-30 pips below the current prices). Watch for opportunities to go long at or near the indicated supports.

Read more on how to trade with Fibonacci levels.