FX.co ★ GBP/JPY Elliott Wave Count and Fibonacci levels for March 6, 2012

The GBP/JPY pair is now moving within the wave C of the medium term uptrend (royal blue in the chart) from 126.63. Within this wave we have subwaves A, and B (magenta in the chart) including the still developing subwave B coming from 130.04. The latter, however, comprises two subwaves (yellow in the chart); the subwave B is developing from 128.16.

The downside targets are Fibonacci retracements of 126.63-130.04, 125.41-130.04, and expansions off 130.04-128.16-129.43.

Supports:

- 128.27 = contracted objective point (COP)
- 127.93 = .618 ret
- 127.72 = .50 ret
- 127.55 = objective point (OP)
- 128.17 = .618 ret

If the price resumes the uptrend, the immediate resistances will be Fibonacci expansions off 125.41-129.71-126.63, 126.63-130.04-128.16.

Resistances:

- 130.27 = COP
- 130.93 = OP

Overbought/Oversold

The bigger wave is now moving upwards, so it is better to try long positions when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (20-35 pips below the current prices). Consider the opportunities for the long positions at or near the indicated supports.

Read more on how to trade with Fibonacci levels.