FX.co ★ GBP/JPY Elliott Wave Count and Fibonacci Levels for March 23, 2012

The GBP/JPY pair is developing the corrective wave B of the medium term uptrend from the point 133.42 (royal blue in the chart). This wave includes two subwaves (magenta in the chart); a corrective subwave B is developing from 130.02.

The downside targets are Fibonacci retracements 126.48-133.42.

Supports:

- 129.95 = .50 retracement
- 129.13 = .618 ret

The upside targets are Fibonacci expansions 126.48-133.42-130.02 and retracements 133.42-130.02.

Resistances:

- 131.32 = .382 ret
- 131.72 = .50 ret
- 132.12 = .618 ret
- 134.31 = contracted objective point (COP)

Overbought/Oversold

The bigger wave is now moving down, so it is preferable to try short positions when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (20-35 pips below the current prices). Watch for the opportunities to go short at or near the indicated resistances.

Read more on how to trade with Fibonacci levels.