GBP/JPY Elliott Wave Count and Fibonacci Levels for June 1, 2012 2012-06-01
The GBP/JPY pair is developing an impulse wave C of the medium term downtrend from 129.32 (light green in the chart) including three subwaves (magenta in the chart) and an impulse subwave C developing from 126.39. Within this wave we also have three subwaves (red in the chart) and an impulse subwave C developing from 125.03 that includes five subwaves (orange red in the chart) and subwave 5 developing from 122.41.
Now the downside targets are Fibonacci expansions of 131.75-127.76-129.33, 129.33-124.59-126.39, 126.39-124.08-125.03, 125.03-124.33-124.92, 124.92-121.71-122.41.
- 119.20 = objective point (OP) - 118.98-87 = confluence area of two super expanded objective points (SXOP) - 118.72 = expanded objective point (XOP)
If the price reverses to the upside, the immediate resistances will be Fibonacci retracements of 125.03-120.09.
- 121.98 = .382 retracement - 122.58 = .50 ret - 123.14 = .618 ret
The bigger wave is now moving downwards, so it is preferable to try short positions when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (30-45 pips above the current prices). Watch for opportunities to go short at or near the indicated resistances.