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

GBP/JPY is now 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 waves of a still smaller degree - they are A, B, and C (colored magenta in the chart), and subwave C is still developing from 121.34. Subwave C was confirmed when the price broke above 122.79 (top of subwave A).
Now the targets of the upmove are Fibonacci retracements of 127.25-117.22, and expansions off 117.22-121.98-119.53, 119.53-122.79-121.34, 121.34-122.36-121.97.

Resistances:

- 122.99 = objective point (OP)
- 123.35-42 = confluence area of contracted objective point (COP) and .618 retracement
- 123.62 = expanded objective point (XOP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 119.53-122.91, 121.34-122.91.

Supports:

- 122.31 = .382 ret
- 122.13 = .50 ret
- 121.94 = .618 ret
- 121.62 = .382 ret
- 121.22 = .50 ret
- 120.82 = .618 ret

Overbought/Oversold

The bigger wave is now moving up, therefore it's preferable to try long positions when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (15-25 pips below the current prices).

Read more on how to trade with Fibonacci levels.