30.06.201015:00 Forex Analysis & Reviews: GBP/JPY Elliott wave count and Fibonacci levels, June 30, 2010

The pound/yen is now standing is a corrective wave to intermediate impulse 135.23-132.80. This is the wave that elicits Fibonacci retracement points. We get more resistances off waves 132.80-133.70-132.85, that produce Fibonacci expansion points.

Price targets above the current level:

- 133.73-75 = confluence area of .382 retracement and objective point (OP)
- 134.01 = .50 retracement
- 134.30-31 = confluence area of .618 retracement and expanded objective point (XOP)

In case the price declines below 132.80, which will confirm wave C, our targets will be Fibonacci expansion points off 136.00-133.02-135.21, 135.21-132.80-134.01. Wave 130.40-136.00 produces Fibonacci retracements.

Price targets below the current level:

- 132.54-51 = confluence area of .618 and contracted objective point (COP)
- 132.23 = OP
- 131.72 = .764 retracement
- 131.58 = OP

Overbought/Oversold

The Detrended Oscillator is slightly below the zero level. As soon as the prevailing trend is down, one chould wait for a tradable retracement to short the market some 30-50 pips higher than the current price. The nearest Fibnode that corresponds to this level is 133.73, which is .382 retracement of wave 135.23-132.80.