FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels for February 28, 2012

GBP/JPY has developed five waves of medium term uptrend (colored magenta in the chart) from 119.53 to 129.71. Now potential corrective wave A is developing from 129.71. The targets of the downmove are Fibonacci retracements of 119.53-129.71.

Supports:

- 125.82 = .382 retracement
- 124.62 = .50 ret
- 123.42 = .618 ret

If the uptrend continues the immediate resistances will be Fibonacci expansions off 119.53-123.11-121.62, 121.62-126.77-125.41, 125.41-129.71-126.63.

Resistances:

- 129.29 = contracted objective point (COP)
- 130.56 = objective point (OP)
- 130.93-99 = confluence area of OP and super expanded objective point (SXOP)

Overbought/Oversold

The bigger wave is now moving down, so it's preferable to try short positions when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (current prices as well). Watch for opportunities to go short at or near the indicated resistances.

Read more on how to trade with Fibonacci levels.