FX.co ★ GBP/JPY Elliott wave count and Fibonacci levels for February 24, 2012

GBP/JPY is developing impulse subwave C (colored royal blue in the chart) that is part of impulse wave A of a larger degree (colored light green in the chart) from 117.22. Within the former subwave there are also waves of a still smaller degree - they are A, B, and C (colored magenta in the chart), and potential corrective subwave 4 is developing against the uptrend from 126.77. Within this wave we have A, and B subwaves with subwave B still developing from 125.41 (colored red in the chart).

Now the targets of the upmove are Fibonacci expansions off 117.22-121.98-119.53, 119.53-123.11-121.62, 121.62-126.77-125.41, 125.41-126.14-125.57.

Resistances:

- 126.75 = expanded objective point (XOP)
- 127.23 = XOP
- 127.41 = XOP
- 127.48 = super expanded objective point (SXOP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of 121.62-126.77, 119.53-126.77.

Supports:

- 124.80 = .382 retracement
- 124.19 = .50 ret
- 124.00 = .382 ret

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 (30-35 pips below the current prices) or into the oversold area (50-60 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.