19.04.201110:57 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels - April 19, 2011

Long-term review

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GBP/JPY is developing corrective subwave 4 (colored orange blue in the chart) within impulse wave C of medium term downtrend - colored magenta in the chart. The latter in its turn is part of wave B of still larger degree - colored light green in the chart. The targets of the upmove are Fibonacci retracements of 136.36-139.90, 136.96-132.90, and 139.93-132.90.

Resistances:

- 134.22 = .382 retracement
- 134.45 = .382 ret
- 134.63 = .50 ret
- 134.93-135.04 = .50 and .618 retracements
- 135.41-55 = .618 and .382 retracements

If the downtrend resumes the immediate supports will be Fibonacci retracements of 130.18-139.93, 122.49-139.93, and expansions off 139.93-135.19-136.96, 136.96-135.53-136.36.

Supports:

- 133.27 = .382 ret, already fulfilled
- 132.62 = super expanded objective point (SXOP)
- 132.22 = OP
- 131.21 = .50 ret

Overbought/Oversold

Assuming that the wave of a larger degree is moving down it's preferable to open short positions when the Detrended Oscillator gets above the zero level (25-35 pips above the current prices) or into the overbought area (45-55 pips above the current prices).

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