GBP/JPY Elliott wave count and Fibonacci levels for October 18, 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 three subwaves (colored magenta in the chart), and subwave C is still developing from 120.27. The targets of the upmove are Fibonacci retracements of 130.81-116.78 and expansions off 116.78-120.78-116.91, 116.91-122.30-120.27, 120.27-122.58-120.76.
Resistances:
- 123.07 = objective point (OP)
- 123.38 = expanded objective point (XOP)
- 123.60 = contracted objective point (COP)
- 123.80 = .50 retracement
- 124.50 = XOP
- 125.45 = .618 ret
- 125.66 = OP
If the price reverses to the downside the immediate supports will be Fibonacci retracements of 116.91-122.58.
Supports:
- 120.41 = .382 ret
- 119.75 = .50 ret
- 119.08 = .618 ret

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 (15-20 pips below the current prices) or into the oversold area (50-65 pips below the current prices).
http://instaforex.com/forex_analysis/41747/?x=OUE

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