GBP/JPY Elliott wave count and Fibonacci levels for March 21, 2012 ^2012-03-21

GBP/JPY is developing wave A of medium term uptrend from 126.48 (royal blue in the chart). Within this wave we have three subwaves (magenta in the chart), and impulse subwave C is developing from 130.15. Within it we have subwaves A, B, and C (red in the chart), with subwave C developing from 131.39. The latter, by the way, also has its subwaves - A, B, and C (orange red in the chart) with subwave C developing from 132.19.

Now the targets of the upmove are Fibonacci expansions off 126.48-131.65-130.15, 130.15-132.37-131.39, 131.39-132.92-132.19.

Resistances:

- 133.14 = contracted objective point (COP)
- 133.35 = COP
- 133.61 = objective point (OP)
- 133.72 = OP
- 134.67 = expanded objective point (XOP)
- 134.98 = XOP

If the price reverses to the downside the immediate supports will be Fibonacci retracements of the wave up from 130.15 - this wave is not developed yet, so no supports are available so far.

Overbought/Oversold

The bigger wave is now moving up, so it's preferable to try long positions when the Detrended Oscillator goes below the zero level (10-15 pips below the current prices) or into the oversold area (40-55 pips below the current prices). Watch for opportunities to go long at or near the indicated supports.

Read more on how to trade with Fibonacci levels.