FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels for April 10, 2012

GBP/JPY is developing impulse wave C of medium term downtrend from 133.32 (light green in the chart). Within this wave we have three subwaves (royal blue in the chart), A, B, and impulse subwave C that is developing from 133.19. Within this wave there are three subwaves (magenta in the chart), and impulse subwave C is developing from 130.81. On still smaller level there are A and B waves within it (red in the chart), and subwave B is developing from 128.77.

Now the targets below are Fibonacci expansions off 133.42-129.94-133.32, 133.32-130.08-133.19, 133.19-129.45-130.81, 130.81-128.77-130.17.

Supports:

- 128.91 = contracted objective point (COP)
- 128.50 = COP
- 128.13 = objective point (OP)
- 127.95 = expanded objective point (XOP)

If the price reverses to the upside the immediate resistances will be Fibonacci retracements of the wave down from 133.19 - this wave is not developed yet, so no resistances are available so far.

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 (45-50 pips above the current prices) or into the overbought area (80-95 pips above the current prices). Watch for opportunities to go short at or near the indicated resistances.