GBP/JPY Elliott Wave Count and Fibonacci Levels for May 11, 2012 2012-05-11
The GBP/JPY pair is developing a corrective wave B of the medium term downtrend from 127.76 (light green in the chart). Within this wave we have two subwaves (red in the chart) and a potential corrective subwave B developing from 129.32.
The downside targets are Fibonacci expansions of 131.75-127.76-129.32, 130.71-127.76-129.32.
- 127.50 = contracted objective point (COP) - 126.85 = COP - 126.37 = objective point (OP)
If the price reverses to the upside, the immediate resistances will be Fibonacci retracements of 130.71-127.76, 131.75-127.76.
- 129.58 = .618 retracement - 129.76 = .50 ret - 130.23 = .618 ret
The bigger wave is now moving downwards, so it is recommended to try short positions when the Detrended Oscillator goes above the zero level (20-25 pips above the current prices) or into the overbought area (50-65 pips above the current prices). Watch for opportunities to go short at or near the indicated resistances.