GBP/JPY Elliott wave count and Fibonacci levels for May 22, 2012 2012-05-22
GBP/JPY is developing impulse wave C of medium term downtrend from 129.32 (light green in the chart). Within this wave we have four subwaves (red in the chart), and potential corrective subwave 4 is developing from 124.59. The latter also has its subwaves (orange red in the chart), and potential corrective subwave B is developing from 127.56.
Now the resistances are Fibonacci retracements of 128.71-124.59, and expansions off 124.59-125.76-125.02.
- 125.74 = contracted objective point (COP) - 126.16-19 = confluence area of .382 retracement and objective point (OP) - 126.65 = .50 ret
The immediate supports are Fibonacci expansions off 131.75-127.76-129.32, 128.71-124.59-125.76.
- 123.21 = contracted objective point (COP) - 122.86 = expanded objective point (XOP)
The bigger wave is now moving down, so it's preferable to try short positions when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (15-20 pips above the current prices). Watch for opportunities to go short at or near the indicated resistances.