25.10.201109:53 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels for October 25, 2011

GBP/JPY is developing impulse wave C (colored light green in the chart) of medium term uptrend from 116.91. Within this wave there are two subwaves (colored royal blue in the chart), and subwave B is still developing from 122.58. The targets of the downmove are Fibonacci retracements of 116.91-122.58, and expansions off 122.58-119.97-122.04, 122.04-120.93-121.91.

Supports:

- 120.80 = objective point (OP)
- 120.43 = contracted objective point (COP)
- 120.11 = expanded objective point (XOP)
- 119.75 = .50 ret
- 119.43 = OP
- 119.08 = .618 ret
- 119.00 = super expanded objective point (SXOP)

If the price keeps advancing the immediate resistances will be Fibonacci retracements of 130.81-116.78 and expansions off 116.78-120.78-116.91, 116.91-122.58-119.93, 119.93-122.04-120.93.

Resistances:

- 122.23 = COP
- 123.04 = OP
- 123.38-43 = confluence area of XOP and COP
- 123.80 = .50 retracement

Overbought/Oversold

Assuming that the major wave is now up it's preferable to try long positions when the Detrended Oscillator gets below the zero level (current prices) or into the oversold area (20-35 pips below the current prices).

Read more on how to apply Fibonacci studies to calculate price targets.