06.04.201210:46 Forex Analysis & Reviews: GBP/JPY Elliott Wave Count and Fibonacci Levels for April 6, 2012

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The GBP/JPY pair is developing a corrective wave B of the medium term uptrend from 133.42 (light green in the chart). Within this wave we have three subwaves (royal blue in the chart), A, B, and an impulse subwave C developing from 133.32. Within this wave there are three subwaves (magenta in the chart) and an impulse subwave C developing from 133.19. At smaller level there are A, B, and C waves within it (red in the chart) and potential corrective subwave 4 developing from 129.45.

Presently the downside targets are Fibonacci retracements 126.48-133.42 and expansions 133.42-129.94-133.32, 133.32-130.08-133.19, 133.19-130.71-131.92.

Supports:

- 129.13 = .618 retracement
- 127.95-91 = expanded objective point (XOP)
- 127.69 = XOP

If the price reverses to the upside, the immediate resistances will be Fibonacci retracements 133.19-129.45, 131.92-129.45 and expansions 129.45-130.54-129.99.

Resistances:

- 130.66-59 = confluence area of contracted objective point (COP) and .50 ret
- 130.88 = .382 ret
- 130.98 = .618 ret
- 131.08 = objective point (OP)
- 131.32 = .50 ret
- 131.75-76 = confluence area of .618 ret and XOP

Overbought/Oversold

The bigger wave is now moving downside, so it is recommended to try short positions when the Detrended Oscillator goes above the zero level (current prices) or into the overbought area (20-35 pips above the current prices). Look for the opportunities to go short at or near the indicated resistances.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.