25.01.201210:10 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels for January 25, 2012

Long-term review

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GBP/JPY strongly broke above 120.14 to continue wave 5 of medium term uptrend (colored red in the chart). The whole 5-wave cycle started from 117.22. Now the targets above are Fibonacci retracements of 127.25-117.22, and expansions off 117.49-120.14-119.58 (these are waves 3 and 4).

Resistances:

- 122.23-24 = confluence area of objective point (OP) and .50 retracement
- 123.42 = .618 ret
- 123.87 = expanded objective point (XOP)

If the price reverses to the downside the immediate supports will be Fibonacci retracements of the 5th wave from 119.58 - this wave is not developed, so no supports are available so far.

Overbought/Oversold

The bigger wave is now moving up, therefore it's preferable to try long positions when the Detrended Oscillator gets below the zero level (10-20 pips below the current prices) or into the oversold area (30-40 pips below the current prices).

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