GBP/JPY Elliott wave count and Fibonacci levels for May 8, 2012 2012-05-08
GBP/JPY is developing corrective wave B of medium term uptrend from 127.04 (light green in the chart). Within this wave we have three subwaves (royal blue in the chart), and impulse subwave C is developing from 130.71. Within it there are two subwaves (magenta in the chart), and potential corrective subwave B is developing from 128.34.
The targets below are Fibonacci expansions off 131.75-129.02-130.71, 130.71-128.34-129.51.
- 128.05-127.98 = confluence area of contracted objective point (COP) and objective point (OP) - 127.14 = OP
If the price reverses to the upside the immediate resistances will be Fibonacci retracements of 130.71-128.34, 131.75-128.34.
- 129.53 = .50 retracement - 129.64 = .382 ret - 129.80 = .618 ret - 130.05 = .50 ret
The bigger wave is now moving down, so it's preferable to try short positions when the Detrended Oscillator goes above the zero level (15-20 pips above the current prices) or into the overbought area (40-55 pips above the current prices). Watch for opportunities to go short at or near the indicated resistances.