GBP/JPY Elliott wave count and Fibonacci levels for November 9, 2011

Wave analysis

Roman Molodiashin

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 four subwaves (colored royal blue in the chart), and corrective subwave 4 is still developing from 127.25. Within the latter wave there are three waves (colored magenta in the chart) with potential subwave C still developing from 125.63. The targets below are Fibonacci retracements of 119.93-127.25, and expansions off 127.25-123.85-125.63, 125.63-124.75-125.56.
Supports:
- 124.68 = objective point (OP)
- 124.14 = expanded objective point (XOP)
- 123.59-53 = confluence area of .50 retracement and contracted objective point (COP)
- 123.26 = expanded objective point (XOP)
- 122.73 = .618 ret
- 122.23 = objective point (OP)
The targets of the upmove are Fibonacci retracements of 127.25-123.85.
Resistances:
- 125.95 = .618 retracement
- 126.52 = .786

Overbought/Oversold
Assuming that the major wave is now down it's preferable to try short positions when the Detrended Oscillator gets above the zero level (15-20 pips above the current prices) or into the overbought area (40-50 pips above the current prices).
http://instaforex.com/forex_analysis/43389/?x=OUE

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