24.06.201015:00 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels June 24, 2010

The pound/yen is now standing in the flat 133.01-134.95. The breakout of the flat will show the direction of the intermediate trend. According to wave count the larger wave is down, and a smaller degree wave C can be developed. The confirmation of wave C is the break of 133.01, wave C is cancelled in case 134.95 is broken.

The price targets below are Fibonacci retracements of 130.40-136.00 and expansion points off 136.00-133.01-134.95, 134.95-133.62-134.84.

Price targets below the current level:

- 133.51 = objective point (OP)
- 133.10 = contracted objective point (COP)
- 132.69 = expanded objective point (XOP)
- 132.54 = .618 retracement
- 131.96 = OP
- 131.72 = .764 retracement
- 131.36 = super expanded objective point (SXOP)

In case wave C is cancelled and the price moves to the buy side, the targets above will be Fibonacci expansion points off 133.01-134.95-133.62:

- 135.56 = OP
- 136.76 = XOP

(Read more about EWA and Fibonacci levels)

Overbought/Oversold

At the moment the indicator is oscillating around the zero level. If we follow the wave count, i.e. trade in the wave of a larger degree, which is a down wave, short positions should only be initiated on indicator reaching overbought area and the price nearing a Fibonacci resistance off the wave 136.00-133.01. E.g. 136.86 (.618 retracement) or 135.29 (.764 retracement).