GBP/JPY Elliott wave count and Fibonacci levels for November 11, 2011

Wave analysis

Roman Molodiashin

   GBP/JPY is developing corrective wave 4 (colored light green in the chart) of medium term uptrend from 127.25. Within this wave there are three subwaves (colored magenta in the chart), and impulse subwave is still developing from 125.63. The targets below are Fibonacci retracements of 119.93-127.25, 116.91-127.25, and expansions off 127.25-123.85-125.63, 125.63-124.75-125.56, 125.56-123.01-123.81.
Supports:
- 122.73 = .618 retracement
- 122.23 = confluence area of two objective points (OP)
- 122.08 = .50 ret
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 125.56-123.01.
Resistances:
- 123.98 = .382 retracement
- 124.29 = .50 ret
- 124.59 = .618 ret

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 (10-15 pips above the current prices) or into the overbought area (20-30 pips above the current prices).
http://instaforex.com/forex_analysis/43598/?x=OUE

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