GBP/JPY Elliott wave count and Fibonacci levels for November 17, 2011

Wave analysis

Roman Molodiashin

GBP/JPY is developing wave A (colored light green in the chart) of medium term downtrend from 127.25. Within this wave there are three subwaves (colored royal blue in the chart), and impulse subwave С is still developing from 125.63. Within the latter there are also three subwaves (colored magenta in the chart) with impulse subwave C developing from 124.22. The targets below are Fibonacci retracements of 116.91-127.25, and expansions off 127.25-123.85-125.63, 125.63-122.90-124.22, 124.22-122.26-123.09.
Supports:
- 120.78 = .618 retracement
- 120.13 = expanded objective point (XOP)
- 119.92-80 = confluence area of two XOP's
- 119.02 = .786 ret
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 124.22-120.82.
Resistances:
- 122.12 = .382 ret
- 122.52 = .50 ret
- 122.92 = .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 (current prices) or into the overbought area (10-20 pips above the current prices).
http://instaforex.com/forex_analysis/44028/?x=OUE

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