GBP/JPY Elliott wave count and Fibonacci levels for March 9, 2012
GBP/JPY is now developing impulse wave A of medium term downtrend (royal blue in the chart), until the price breaks above 130.04. Within this wave we have subwaves A, and B (magenta in the chart) that is developing from 126.48. Within the latter we have five subwaves (yellow in the chart), and subwave 5 is still developing from 128.31.
The targets of the upmove are Fibonacci expansions off 126.84-129.13-128.31.
- 129.73 = contracted objective point (COP)
- 130.60 = objective point (OP)
But if the price reverses to the downside the immediate supports will be Fibonacci retracements of 126.48-129.51.
- 128.35 = .382 retracement
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- 128.00 = .50 ret
- 127.64 = .618 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 (50-65 pips above the current prices). Watch for opportunities to go short at or near the indicated resistances.
Read more on how to trade with Fibonacci levels.
Published: 9 Mar 2012, 11:04 UTC+00