GBP/JPY Elliott wave count and Fibonacci levels for September 16, 2011

Roman Molodiashin

Wave analysis


GBP/JPY is developing impulse wave C (colored light green in the chart) of medium term downtrend from 127.31. Within this wave there are five subwaves (colored royal blue in the chart) with impulse subwave 5 still developing from 124.36.
The targets of the downmove are Fibonacci expansions off 130.81-123.27-127.31, 127.31-124.47-126.55, 126.55-123.04-124.36, 124.36-121.27-120.61-122.22.
Supports:
- 119.90 = contracted objective point (COP)
- 119.77 = objective point (OP)
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 124.63-120.61, and expansions off 120.61-122.22-120.97.
Resistances:
- 121.96 = COP
- 122.15 = .382 retracement
- 122.58-62 = confluence area of OP and .50 ret
- 123.09 = .618 ret
- 123.57 = expanded objective point (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 (current prices) or into the overbought area (15-30 pips above the current prices).
http://instaforex.com/forex_analysis/38814/?x=OUE