GBP/JPY Elliott Wave Count and Fibonacci Levels for March 27, 2012 2012-03-27
The GBP/JPY pair is developing the corrective wave B of the medium term uptrend from 133.42 (royal blue in the chart) comprisisng two subwaves (red in the chart) and a corrective subwave B developing from 129.94. Within this wave we have four subwaves (yellow in the chart) and subwave 4 having started recently from 132.46.
Now the downside targets are Fibonacci retracements 126.48-133.42, 129.94-132.46 and expansions 133.42-129.94-132.46.
- 131.50 = .382 retracement - 131.20 = .50 ret - 130.90 = .618 ret - 130.31 = contracted objective point (COP) - 129.95 = .50 ret - 129.13-128.98 = confluence area of .618 ret and objective point (OP)
The upside targets are Fibonacci expansions 126.48-133.42-129.94, 129.94-131.31-130.68.
- 132.90 = expanded objective point (XOP) - 134.23-27 = confluence area of COP and super expanded objective point (SXOP)
The bigger wave is now moving downwards, so it is better to try short positions when the Detrended Oscillator goes above the zero level (5-10 pips above the current prices) or into the overbought area (25-40 pips above the current prices). Consider the opportunities to go short at or near the indicated resistances.