09.09.201111:41 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels for September 9, 2011

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

GBP/JPY is developing impulse wave РЎ (colored light green in the chart) of medium term downtrend from 127.31. Within this wave there are four subwaves (colored royal blue in the chart) with subwave 4 still developing from 123.04.

The targets of the upmove are Fibonacci retracements of 123.04-126.55, and expansions off 123.04-123.93-123.11, 123.11-124.36-123.60.

Resistances:

- 124.37-38 = confluence area of contracted objective point (COP) and .382 retracement
- 124.55 = expanded objective point (XOP)
- 124.80-85 = confluence area of .50 ret and objective point (OP)
- 125.21 = .618 ret
- 125.44 = super expanded objective point (SXOP)
- 125.62 = XOP

If the price continues the downtrend the immediate supports will be Fibonacci expansions off 130.81-123.27-127.31, 127.31-124.47-126.55, 126.55-123.04-124.36.

Supports:

- 122.65 = COP
- 122.19 = COP
- 121.95 = XOP

Overbought/Oversold

Assuming that the major wave is down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (10-15 pips above the current prices) or into the overbought area (45-60 pips above the current prices).

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.