GBP/JPY Elliott wave count and Fibonacci levels for September 23, 2011

Wave analysis

Roman Molodiashin

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. Within wave 5 there are A, B and C subwaves of smaller degree (colored magenta in the chart), with subwave C still developing from 122.22.
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, 124.36-120.61-122.22, 122.22-119.41-120.51, 120.51-119.04-119.76.
Supports:
- 116.15 = expanded objective point (XOP)
- 115.96-91 = confluence area of XOP and super expanded objective point (SXOP)
- 115.17-11 = confluence area of SXOP and XOP
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 120.51-116.78.
Resistances:
- 118.20 = .382 retracement
- 118.55 = .50 ret
- 119.09 = .618 ret



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 (20-30 pips above the current prices).
http://instaforex.com/forex_analysis/39426/?x=OUE