GBP/JPY Elliott wave count and Fibonacci levels for May 3, 2012 2012-05-03
GBP/JPY is developing corrective wave B of medium term uptrend from 127.04 (royal blue in the chart). Within this wave we have two subwaves (magenta in the chart), and potential corrective subwave B is developing from 129.02. Within it there are two subwaves (red in the chart), and subwave B is developing from 130.71.
Now the targets above the current price are Fibonacci expansions off 127.04-131.75-129.02, 129.02-130.71-129.42.
- 131.11 = objective point (OP) - 131.93 = contracted objective point (COP) - 132.15 = expanded objective point (XOP)
If the downtrend resumes the immediate supports will be Fibonacci retracements of 127.04-131.75, and expansions off 131.75-129.02-130.71.
The bigger wave is now moving up, so it's preferable to try long positions when the Detrended Oscillator goes below the zero level (current prices) or into the oversold area (35-55 pips below the current prices). Watch for opportunities to go long at or near the indicated supports.